Pradeep Agarwal informs, “The key sectors that accumulated the maximum FDI include the services segment, computer software and hardware, chemicals, and automobile, among others.”
Ease of doing business in a nation is directly proportional to its Foreign Direct Investment (FDI). India, in this regard, has rapidly worked and recorded huge success. The nation has reportedly amassed huge FDI flows, which it majorly owes to the measures like PM Gati Shakti, single window clearance, and GIS (Graphic Information System)-mapped schemes. Pradeep Agarwal, sheds light on a series of steps taken by the government and talks in-depth about how these initiatives will push investments in 2022.
He states, “India’s position amid the global slowdown due to the COVID-19 pandemic hasn’t dented at all. In fact, total foreign direct investments into India rose to a record $81.72 billion in 2020-21. During FY 2021 from April-July, FDI into the nation increased by a whopping 62 per cent.”
The changing scenario is a refection of the tremendous work that the government of India has done. It also shows that the world wants to remain associated with the nation, despite the unpredictable wave of the pandemic.
Pradeep Agarwal expresses, “Keeping in mind the scenarios witnessed in 2021, it is derivable that the immediate future looks bright. And the all around efforts made by the government of India will readily make the country a destination supreme for all businesses.” He adds, “These structural reforms and a series of measures promote start up programmes and liberalisation of the FDI policy. Also, the efforts by the Centre to support the startup ecosystem have created a positive environment. This has so far 19 central government ministries and 10 states in favour of a national single window system, which, as informed, has been soft launched to safeguard a focal point of clearance for investors.”
Likewise, the India Industrial Land Bank is GIS enabled. This progress implies that the nation successfully mapped over five lakh hectares of land, more than 4,500 industrial parks, and vacant plots, which are up for investors.
Bifurcating FDI’s roadmap, it has been observed that as much as 28 per cent of the FDI came through the Mauritius route. This was followed closely by Singapore route at 22 percent. Leading the single digit tally at 8 percent is the US, followed by Netherlands and Japan at 7 percent each, and the UK at 6 percent. Other small yet significant investors in Indian economy came from Germany, Cyprus, France and Cayman Islands.
Pradeep Agarwal informs, “The key sectors that accumulated the maximum include the services segment, computer software and hardware, chemicals, and automobile, among others”. However, what is to be noted that sectors that need approval of government for foreign investors also witnessed a boom. Under this category fall telecom, media, pharmaceuticals and insurance, among others.
Rising FDI signals great opportunity for India. The given dynamics propose that India will continue in the same vein for years to come. As estimated, it will be through ultimate realisation of foreign investments that the nation will achieve its goal of $5 trillion GDP. Also, as per a survey by Deloitte’s on India’s FDI opportunity, the country has scored in high numbers for its skilled workforce and economic growth, and upholds a strong perception in the US as compared to markets including China, Brazil, Mexico and Vietnam.