Foreign Direct Investment up 35% post-make in India: Govt

Himanshu Vatsa | The Dollar Business

  After the launch of Make in India, the inflow of foreign direct investment (FDI) has grown by 35% and the country has attracted substantial investment from overseas in various sectors, a top government official said on Thursday. The Prime Minister Narendra Modi-led government had launched the ‘make in India’ initiative in September 2014 with an aim to turn the country into a manufacturing hub. Several measures have been announced since then to push the manufacturing sector by attracting private investors from within the country and abroad. “The foreign direct investment in the last 17 months vis a vis the figure of the 17 months of the previous year has grown by 35%,” said Amitabh Kant, Secretary, Department of Investment Promotion and Policy (DIPP) under the Ministry of Commerce. Though the figure for that period is not available, the total FDI received by India in the first half of this year was $31 billion, ahead of $28 billion that went to China and $27 billion to the US. As per the Ministry of Commerce, India attracted $44.29 billion FDI during the last financial year. The figure was much higher than $36.05 billion in 2013-14 and $34.30 billion in 2012-13. According to another data of the DIPP, the total FDI inflow between October 2014 and April 2015 was 48% higher than the amount received during the same period a year ago. While presenting a list of 154 companies that have plans to invest in the country, the DIPP Secretary said that the country needs to focus on building world-class infrastructure to keep the momentum of foreign investment in the country. “This is a constant process of taking India forward. And therefore, our focus is on creating world-class infrastructure. Infrastructure is the key if India has to continue to grow at rapid rates of 9-10%,”  Kant said, adding that the implementation of industrial freight corridor projects is already underway in seven new cities. The Commerce Ministry official said that these freight corridors will also improve the country’s export by reducing the transportation time of goods between the point of manufacturing and ports. At present, it takes up to 14 days for goods manufactured in the northern part to reach the port in western part of the country. Kant said, once the Delhi-Mumbai Industrial Corridor (DMIC) is completed, the goods can reach the port in 14 hours. The project is expected to be completed in the next two years. “By 2018 beginning, these goods will reach in 14 hours. So, the shifts will be from 14 days to 14 hours,” he said. Kant also said that the ‘make in India’ initiative has been launched with an objective to create 100 million jobs by 2025. “And this is not possible till the manufacturing sector gets thrust.” “India has to become part of the global supply chain. We have opened FDI to attract best companies here, to encourage innovation and best designs. Our objective is that the share of manufacturing should go up to 25% of the GDP,” he added. To attract more investments from overseas in the manufacturing sector, the Department of Industrial policy and Promotion will also hold a ‘Make in India’ week in Mumbai from February 13 to 18. More than a thousand companies from across the country and abroad are expected to participate in the event which will be inaugurated by the Prime Minister.  

December 17, 2015  | 05:55pm IST