India is actively striving to boost its annual foreign direct investment (FDI) by more than 50% to help lift economic growth. Nivruti Rai, Managing Director of Invest India, highlighted the need for this increase, stating that the goal for the next seven years is to draw US$110 billion per year, amounting to over US$1 trillion in the next decade. She emphasised the need to work hard towards achieving a growth rate higher than 10%.
Despite the decline in FDI since 2022, India’s potential as an alternative manufacturing hub to China remains strong. Over the seven years through March 2023, India’s annual average FDI was US$71 billion, as reported by Invest India, a joint venture between the Ministry of Commerce and private business chambers. Companies like Apple Inc. have set up factories in recent years, evidence of this potential.
Invest India has identified eight priority areas for investment: electronics manufacturing, automobiles, infrastructure, green energy, food processing, textiles, pharmaceuticals, and foreign institutional investment. Rai believes focusing on these sectors will help India achieve its economic growth targets.
Addressing recent news about Tesla Inc.’s cooled investment in India, Rai expressed no concern, maintaining that the overall trend still points towards higher investment.
Source: indbiz
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