The importance of the Foreign Direct Investment (FDI) in a fast developing country
like India is limitless. Today, India is looked at the best and speedily
growing economy in the world. The growth prospect across the industries is
remarkable. Hence, investors from the different countries are taking keen
interest and making heavy investment in India.
The great initiatives by the Modi
government namely Make in India, Startup India and more are a great boost
resulting in generating employment,
bringing in more FDI, and strengthening the economy of India.
According to the recent report shared by the government, India received FDI worth $64.37 billion during the financial year ending Mar 2019. It is undoubtedly the highest-ever Foreign Direct Investment coming to the country.
The Annual Report 2018-19 released by the
Department for Promotion of Industry and Internal Trade (DPIIT) reveals that
the FDI valuing $286 billion was received in the last five years.
The report said, “India recorded the FDI inflow of USD 64.37 billion in the current fiscal year 2018-19 which is highest-ever in the history.”
The Foreign Direct
Investments in the country is the source of resource inflow including the
introduction of the latest technology, strategies and other result-oriented
practices pushing the economic growth to a height which is beyond the
The DPIIT also stated that the FDI inflow registered
in the nation during 2017-18 was USD 60.98 billion which was higher than the
FDI received in 2016-17. During 2014-15, it was USD 45.14 billion and in
2015-16, the Foreign Direct Investments in
India increased to USD 55.55 billion.
The strong and growth-oriented governance led by the Prime Minister Narendra Modi has attracted foreign investors. Today, heavy investment in the varied sectors has been made by the investor from the different nations. There are numerous advantages of FDI and not only the sources making investment reaps the benefit out of it but also the citizens in the nation enjoys the maximum advantage generated by the huge FDIs.
At present, India is recognized as the largest
market in the world. The Department for
Promotion of Industry and Internal Trade (DPIIT) said that a proven plan of
action has been prepared for the worldwide promotion of Indian ‘Geographical
Indications’ (GIs). It can certainly help to generate supplementary income for
our farmers engaged in the agricultural sector, craftsmen, weavers, and artisans.
This remarkable initiative of bringing in
FDI through Make in India program is considered as the masterstroke of the
ruling government. It has undoubtedly changed the views, and mindset of many
economists and researchers in the country.
The government and the concerned department
are in the continuous process of reviewing our prevailing FDI policy with the
aim of making the Indian FDI policy more investor-friendly.