FDI On a High: Indian FDI Inflows Rises By 25% in April-October Period of Fiscal
FDI On a High: Indian FDI Inflows Rises By 25% in April-October Period of Fiscal
Inflows of foreign direct investment in India have risen by about 25% to USD 17.35 billion during the April to October period of the current financial year, according to Commerce and Industry Minister Smt. Nirmala Sitaraman.
Boost in Investor Sentiments
Improvement in the macroeconomic situation and investor sentiment on the basis of numerous steps taken by the new government has attracted higher FDI, according to the minister. India received USD 13.82 billion foreign inflows in April-October 2013. Boosting the manufacturing sector has its challenges, the minister remarked.
“Still there are number of challenges to make India a global manufacturing hub. (Those obstacles) need to be identified and action plan has to be (formulated) to overcome this,” Smt. Sitharaman said while speaking at the inaugural session of the Make In India workshop.
“We recognise that manufacturing requires infrastructure ... ‘Make in India’ aims to boost entrepreneurship in India,” she also added. The minister also said that several steps have been taken to cut down on red tape and rationalise existing rules and enhanced use of IT to ensure effective governance.
Higher FDI=Higher Growth Trajectory
“A strong manufacturing sector has the potential to take our economic growth to a higher trajectory, provide jobs to our youth and fulfil their aspirations,” Smt. Sitharaman has said. At this occasion, the Cabinet Secretary Ajit Seth has indicated that e-Biz portal has been created for providing a single window platform for clearances as well as approvals for the industry.
Several central and state government services have also been integrated with the portal and more central government services shall also be added in the month, the Cabinet Secretary remarked. Eighteen sessions are being held as part of the workshop where ministries and states have come together to Make in India a success.
Top Investors
Net investment by the foreign investors into Indian equities was at USD 116 million during December 1st to 26th while the total inflows in the debt market during the same period was USD 1.94 billion, as per the latest data. Mauritius and Singapore are the top investors in FDI equity inflows to India. Indian debt market also attracted a massive amount of funds this month and investment in equities stood at USD 116 million. Net investment was USD 16 billion for the equity market, while for the debt markets it was USD 26.4 billion aggregating to USD 42.4 billion. China drew USD 106.2 billion in FDI in 11 months in 2014, as per the Chinese Ministry of Commerce. China attracted USD 10.4 billion in FDI higher by 22.2% a year earlier.
China’s growth story will never find a parallel in India because the two countries are unique. This is why Make in India has a potential of its own, provided manufacturing companies also take the variables and local factors into account. The Make in India versus Make for India debate is growing. So is the need for economic growth and stability. One cannot exist without the other.
