India to attract $100 billion in FDI this fiscal

India is on track to attract $100 billion foreign direct investment (FDI) in the current fiscal on account of economic reforms and ease of doing business, the government said. In 2021-22, the country received the "highest ever" foreign inflows of $83.6 billion.

FDI has come from 101 countries and is invested across 31 UTs and states and 57 sectors in the country. MSMEs growth forms the essential bedrock of the Indian economy. It has attracted foreign investments, as the government has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.

The iconic projects like Make in India, the flagship programme of the Government of India that aspires to facilitate investment, foster innovation, enhance skill development and build best-in-class manufacturing infrastructure, completes eight years of path-breaking reforms on September 25, 2022.

Secondly, the production-linked incentive (PLI) scheme is one of the schemes to attract foreign investment to the country and boost domestic manufacturing. It was launched in 2020-21 as a big boost to the Make in India initiative.

The PLI scheme incentivises domestic production in strategic growth sectors where India has a comparative advantage. This includes strengthening domestic manufacturing, forming resilient supply chains, making Indian industries more competitive and boosting the export potential.

More importantly, the government has taken steps to address the import of low-quality and hazardous toys and to enhance domestic manufacture of toys. Import of toys dropped by 70 per cent to $110 million (Rs 877.8 crore) in 2021-22.

On the other hand, exports rose by 61 per cent to $326 million. Recognising the importance of semiconductors in the global economy, the government has launched a $10-billion incentive scheme to build a semiconductor, display and design ecosystem in India.

Guided by the principle of ‘Reform, Perform and Transform’ the Government of India has brought in several reforms which have furthered ‘Ease of Doing Business’. It includes liberalisation of guidelines and regulations in order to reduce unnecessary compliance burden, bringing down costs and enhancing the ease of doing business in India. FDI equity inflows in India dipped by 6 percent to $16.6 billion during April-June of the current fiscal.