FDI in Manufacturing Rises 69% to $16.5 Billion (2014-24)

13 Aug 2024 CW Team

India has witnessed a substantial increase in Foreign Direct Investment (FDI) in its manufacturing sector, with inflows rising by 69% to $16.5 billion over the past decade, from 2014 to 2024. This surge reflects growing global confidence in India's manufacturing capabilities and its potential as a major production hub.

Jitin Prasada, Minister of State for Commerce and Industry, highlighted that the rise in FDI is indicative of the country's improved business environment and strategic initiatives aimed at enhancing the manufacturing sector. The growth in investment is attributed to various reforms, including the Make in India initiative, which seeks to encourage both domestic and international companies to set up or expand their manufacturing operations in India.

The increase in FDI is expected to boost employment, enhance technological capabilities, and stimulate economic growth. The government's focus on infrastructure development, ease of doing business, and policy support has played a crucial role in attracting foreign investments.

Prasada emphasised that sustained FDI growth will be vital for India?s economic advancement and its aspiration to become a global manufacturing powerhouse. The government is committed to continuing reforms and creating a favourable investment climate to support this growth trajectory.

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