India eyeing US$100b FDI by 2020

The nation is looking to receive US$100 billion in foreign direct investment over the next two years with improving capacity in manufacturing and innovation

December 27, 2018

The government is setting up industrial clusters for countries such as Japan, South Korea, China and Russia where companies can invest and operate

To further boost opportunities, the government has listed companies, sectors and countries that offer the best potential for investments in India

Owing to the government’s measures, India recently advanced 23 spots to reach 77th place in the Ease of Doing Business ranking for 2018

Total FDI inflow into India rose to US$62 billion in 2017-18, from US$60.2 billion in 2016-17, aided by rising participation in global value chains

Government of India is targeting US$100 billion in foreign investment inflow over the coming two years, according to a report by the Press Trust of India, citing the union minister of Commerce and Industry, Suresh Prabhu. To reach this goal, the government is setting up special industrial clusters for countries such as Japan, South Korea, China and Russia where companies of the respective nations will be able to invest and operate. To further boost opportunities, the government has listed companies, sectors and countries that offer the best potential for investments in India.

The Government has also been organising roadshows to attract investors. The campaigning has led to successful investment bids such as China agreeing to set up industrial parks in India along with a growing list of Chinese companies setting up manufacturing bases across India. Similarly, a rising number of American and European companies are setting up or expanding operations in India. This is motivated not just by India’s fast-growing and vast consumer base, but also by India’s rising status as an export destination on the back of high-margin and high-precision expertise.

Owing to the government’s measures, India recently advanced 23 spots to reach 77th place in the Ease of Doing Business ranking for 2018. The world’s fastest-growing major economy has crossed 65 ranks over four years in the ease of doing business index published by the World Bank Group, becoming South Asia’s top-ranked economy. A major driving factor behind this rise has been a series of policy initiatives undertaken by the Government of India since 2014, along with infrastructure investment. Total FDI in India rose to US$62 billion in 2017-18, from US$60.2 billion in 2016-17.

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