Foreign Investment

Foreign Investment in India

Introduction

During liberalization in the year 1991, the government has eased the country's investment policies.

It has made India an ideal investment hub for foreign investors. Investment by foreign companies are also attracted by lower wages, investment privileges, a good business environment, etc.

FDI inflows

According to the investment report 2021, India FDIs were bolstered due to the acquisition in information, communication technology and construction sectors.

Total FDI Inflow

FY20-21, India has attracted a 10% higher FDI inflow than the previous year. Computer software and hardware are reported as a top sector for inflow with a 55% share of the total FDI inflow, construction infrastructure at 16% & service sector at 11%. Among states, Gujarat, Maharastra and Karnataka attracted maximum investment by FDIs.

Boost in FDI investment

The government has relaxed FDI norms in various sectors like telecom, power exchange PSU oil refineries. Few are listed

Revision of existing policies

    Insurance-India will soon allow 20% foreign investment in LIC 

    Telecom-Government approved 100% FDI under automatic route.

    Space-Soon India will open its space sector for private players due to the interest expressed by                           foreign companies to invest in this space.

    Coal-India opened investment in the coal mining sector to non-coal companies

    Media and Civil Aviation-India also liberalized the digital news media and defence sector

Investments from border sharing companies-The government have received the FDI proposals in electronics and IT companies, heavy industry sectors.

Besides the ICT sector, the manufacturing sector also excepting to boost India's FDIs. PLI scheme also aims at increasing exports. India is making significant efforts to become self-reliant. Relexaed policies and investor-friendly reforms will attract foreign investment in future.