India is going all out to shore up inflows of over US$ 100 billion per year in foreign direct investment (FDI), aimed at bolstering the economy and earmarking itself as a prime investment destination. Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, Govt of India, has unveiled this ambitious figure, which exceeds a five-year average of US$ 70 billion FDI until the end of the first quarter of 2023. Multinational corporations striving to diversify and get away from China make India see an opening of an opportunity to use this developing trend.

In spite of encountering global uncertainties, India yearns to reach $100 billion in foreign direct investment by the end of this fiscal year. The government has undertaken several proactive steps, such as the provision of incentives to global enterprises like Apple Inc and Samsung Electronics Co, which has led, in turn, to an increase in the number of investors coming to India. Nevertheless, the latest statistics from the Organisation for Economic Co-operation and Development (OECD) point to a declining share of India in global FDI inflows, which indicates that more efforts are still needed to ensure increased investment.

 Industry analysts propose that although India has undergone numerous policy improvements and perks, it has yet to witness a substantial surge in FDI. However, key sectors such as electronics, IT, and communication continue to pique interest, albeit at a slower pace than anticipated. Looking ahead, experts recommend India focus on leveraging its domestic market while tapping into higher value-added export goods to foster sustained economic growth and attract greater investment inflows.