Union Minister of Commerce and Industry Piyush Goyal. File.
| Photo Credit: PTI
FDI inflows into the country are surging, with investors from the Middle East, Japan, European Union, and the U.S. recognising India’s status as a top investment destination, driving rapid economic growth and generating millions of new jobs, Commerce and Industry Minister Piyush Goyal has said.
He said that global investors are showing keen interest in India as the country offers several advantages such as strong domestic market, skilled and talented workforce and rule of law.
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“I can clearly see FDI [foreign direct investment] in India once again growing rapidly and creating millions of jobs. Countries in the Middle East, EFTA region, Japan, and investors from the EU and the US are all realising that India continues to be the most preferred destination for FDI,” Mr. Goyal told PTI.
He added that India’s stable and predictable regulatory framework, coupled with a favourable business environment and progressive policies aimed at enhancing ease of doing business, is attracting an increasing number of investors from around the world.
“Last month I met a CEO of one of the largest funds in the U.S., who is also the largest investor in India, and he shared with me that his investments in India over the last 10 years have been some of the best investments his funds have ever done,” he noted.
The U.S. fund, Mr. Goyal said, informed him that they are investors in India for the last 20 years, but more than 80 per cent of their investments happened in the last few years.
“The CEO told me that he will be coming to India to celebrate 20 years of investing in India by announcing a further tranche of investments in India,” he said.
The healthy performance of the Indian stock market will also attract more and more FIIs (foreign institutional investors), the Minister said.
India is averaging over $4.5 billion in monthly foreign direct investment (FDI) inflows since January this year despite global uncertainties and challenges.
In the January-September period this year, FDI into the country rose by about 42% to $42.13 billion. The inflow was at $29.73 billion in the year-ago period.
The inflows during April-Sept 2024-25 grew by 45% to $29.79 billion against $20.48 billion in the same period previous fiscal. Total FDI in 2023-24 was a healthy $71.28 billion.
The key sectors attracting the maximum of these inflows include the services segment, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.
FDI is allowed through the automatic route in most of the sectors while in areas such as telecom, media, pharmaceuticals and insurance, government approval is required for foreign investors.
These inflows are important as India would require huge investments in the coming years for its infrastructure sector to boost growth. Healthy foreign inflows also help in maintaining the balance of payments and the value of the rupee.
Published – January 05, 2025 05:09 pm IST
