India targets 50% rise in annual FDI

India has set an ambitious target to attract more foreign direct investment (FDI) in the coming years, by over 50 per cent.

In the next seven years, the country aims to attract $110 billion annually, totaling approximately $1 trillion over the next decade, said Nivruti Rai, managing director of Invest India, in an interview with Bloomberg TV’s Paul Allen.

“We have to work hard towards growing at a rate higher than 10 per cent,” he added.

India’s average annual FDI over the past seven years was $71 billion, according to data from the investment agency, a partnership between the Ministry of Commerce and private business chambers.

Despite positioning itself as a manufacturing hub, FDI into India has decreased since 2022.However, some major corporations like Apple Inc. have established manufacturing facilities in India in recent years.

Invest India has identified eight key sectors for investment: electronics manufacturing, automobiles, infrastructure, green energy, food processing, textiles, pharmaceuticals, and foreign institutional investment.

Rai believes these sectors hold the potential to propel India’s economic growth beyond 10 per cent.

While recent news reports suggested a cooling of interest from Tesla Inc., Rai downplayed the concern, maintaining that the overall trend points towards increased foreign investment in India.

Attribution: Bloomberg