Government sets ambitious target of $100 billion in foreign direct investment amid recent declines

New Delhi: The government has set an ambitious target of attracting $100 billion in foreign direct investment (FDI), reversing the declining trend seen in recent years.

Foreign direct investment (FDI) inflows fell to $70 billion in fiscal year 2024 from $71 billion in fiscal year 2023, according to a report by the Global Trade Research Initiative.

Briefing reporters on the achievements of the Department for Promotion of Industry and Internal Trade (DPIIT) in the first 100 days of the government, Secretary Amardeep Bhatia said, “We are taking concrete steps to ensure that job- and skill-centric industries are given priority and investments through FDI touch $100 billion in the coming years.”

He said the trend of foreign direct investment (FDI) is improving, noting that USD 22.9 billion inflows were recorded in the first four months of fiscal year 2024, an increase of 26% compared to the same period last year.

India attracted $667.4 billion in FDI inflows between 2014 and 2024

According to the Ministry of Commerce, India attracted a total foreign direct investment (FDI) inflow of $667.4 billion between 2014 and 2024, up a whopping 119% over the previous decade (2004-14).

The investment spans across all states and 57 sectors, contributing to growth across industries.

Most sectors, except some of strategic importance, are open to 100% foreign direct investment under the automatic route.

The Commerce Ministry said that foreign direct capital inflows into the manufacturing sector reached $165.1 billion during the decade, up 69% from the $97.7 billion recorded between 2004 and 2014.

Bhatia added that discussions are underway with the departments concerned to introduce a set of amendments to ease compliance requirements for industrial activities. DPIIT has identified 100 such compliance issues which will be addressed through the legislative process soon, he said.

“We have taken steps to facilitate investments under the Make in India programme. We have also focused on attracting technology. Another thrust of Make in India has been infrastructure development, which has been accelerated through setting up of industrial parks and corridors,” Bhatia said.

“We are also focused on improving the ease of doing business, which has been a key focus area. Over 42,000 compliance requirements have been eliminated, which has delivered significant benefits to the industry.”

The Centre is also supporting states in implementing these reforms. The Production-Linked Incentive (PLI) scheme has received a positive response, generating employment for 900,000 people under the scheme, he added.

On the extension of PLI to other sectors, Bhatia clarified that no decision has been taken yet and that the focus at present is still on the 14 existing sectors.

He also clarified that there are no proposals to extend PLI to drones as the civil aviation ministry has not made any such proposal, though it is considered an emerging sector.