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According to DPIIT, defense contracts worth billions of dollars were awarded to Indian companies like Tata, L&T, and Bharat Forge, fostering a growing ecosystem of defense manufacturing.
India is receiving foreign direct investments (FDI) of $70-80 billion ever year and is expected to hit $100 billion per annum in the coming years, a top government official said on Wednesday.
Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Amardeep Singh Bhatia said the department is also streamlining approval processes for FDI applications.
The government has taken a series of measures to promote investments into the country such as easing the norms in sectors such as defence, railways, insurance, and telecom.
“We are targeting much higher investment flows. We have about $70 billion to $80 billion which is coming in every year. But we are expecting this to increase to at least $100 billion a year in the years to come,” he told reporters here.
Bhatia said FDI in most sectors are permitted through under automatic route, barring few that still remain in the restricted category.
The overseas inflows in the last 10 years (2014-24) stood at $667.4 billion as against $304.1 billion during 2004-14.
The FDI equity inflow reported in manufacturing sectors in the last 10 financial years (2014-24) was $165.1 billion, an increase of 69 per cent as compared to $97.7 billion received during the previous 10 financial years (2004-14).
Automobiles, telecommunications and pharmaceuticals were the sectors that saw the highest FDI.
Speaking at the briefing, Additional Secretary in the DPIIT Himani Pande said during the first quarter of this fiscal year, India attracted FDI worth $22.49 billion as against $17.56 billion in April-June 2023-24.
“So I think, we are going towards a better trajectory as compared to last year… There has been a continuous effort for liberalizing FDI,” she said.
According to DPIIT, defense contracts worth billions of dollars were awarded to Indian companies like Tata, L&T, and Bharat Forge, fostering a growing ecosystem of defense manufacturing.
“While challenges remain in areas such as job creation and SME growth, the Make in India initiative has significantly enhanced India’s industrial capacity and export competitiveness over the last decade,” it said.
As of now, no change in norms for Chinese investments in India: DPIIT Secy
Investments from China into India are governed by the existing foreign direct investment (FDI) policy and as of now, there is no change in that, a top government official said on Wednesday.
FDI applications from countries sharing land border with India like China have to mandatorily seek government approval for all sectors. This policy was issued in April 2020.
“The policy with regard to investments (from China) is laid down in the press note 3, so we continue with that policy. As of now, there is no change in that policy. In case if any change comes in, we will let you know,” Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Amardeep Singh Bhatia told reporters here.
He was replying to a question about Chinese investments into India in terms of promoting Make in India.
Bhatia also said the sentiments among foreign investors for India is positive.
“Investors are very enthusiastic about investing in India,” he added.
In 2020, the government made its approval mandatory for FDI from countries that share landed border with India.
Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
On July 30, Commerce and Industry Minister Piyush Goyal has said there is no rethinking in the government to support foreign direct investments (FDI) from China.
These remarks assume significance as the pre-Budget Economic Survey on July 22 had suggested that instead of importing goods, focusing on FDI from China seems more promising.
China stands at the 22nd position with only 0.37 per cent share (USD 2.5 billion) in the total FDI equity inflow reported in India from April 2000 to March 2024.
The ties between the two countries nosedived significantly following the fierce clash in the Galwan Valley in June 2020 that marked the most serious military conflict between the two sides in decades.
The Indian and Chinese militaries have been locked in a stand-off since May 2020, and a full resolution of the border row has not yet been achieved, though the two sides have disengaged from several friction points.
India has been maintaining that its ties with China cannot be normal unless there is peace in the border areas.
Following these tensions, India has banned over 200 Chinese mobile apps like TikTok, WeChat, and Alibaba’s UC browser. The country has also rejected a major investment proposal from electric vehicle maker BYD.
Although India has received minimal FDI from China, the bilateral trade between the two nations has grown multi-fold.
China has emerged as the largest trading partner of India with USD 118.4 billion two-way commerce in 2023-24, edging past the US. India’s exports to China rose 8.7 per cent to USD 16.67 billion in the last fiscal year.
Imports from the neighboring country increased 3.24 per cent to USD 101.7 billion. The trade deficit widened to USD 85 billion in the last fiscal year from USD 83.2 billion in 2022-23.
The commerce and industry ministry said the production-linked incentive (PLI) schemes introduced in 2020 have resulted in Rs 1.32 lakh crore (USD 16 billion) in investments and a significant boost in manufacturing output of Rs 10.90 lakh crore (USD 130 billion) as of June 2024.
First Published: Sep 25, 2024 | 5:37 PM IST
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