India is set to become a preferred country for foreign investments under the government led by its Prime Minister Narendra Modi.
The FDI inflow has significantly increased and set new records over the past couple of years. The inflow peaked at $81.97 billion in 2020-21, reports ANI.
The increase in India's FDI is a result of its status as a preferred investment destination, reported Saudi Gazette.
The FDI policies are regularly monitored and reviewed by the government to ensure that India remains an attractive and investor-friendly destination. The take on these policies are liberal and transparent while the majority of the sectors are open to FDI under the automatic route.
To maintain the liberalization and simplification of the FDI policy, modifications have been made in sectors such as Coal Mining, Contract Manufacturing, Digital Media. Single Brand Retail Trading, Civil Aviation, Defense, Insurance and Telecom.
According to the Minister of State in the Ministry of Commerce and Industry, Som Prakash, India's progress has been able to reach new heights due to its current Prime Minister Narendra Modi.
MoS Prakash also included in a written statement that "Various initiatives/schemes have been launched by the government for promoting growth and attracting investment in India."
He also added that due to these initiatives, India's rank has jumped to the 63rd place in World Bank's Ease of Doing Business (EODB) whereas the ranking back in 2014 was only 142nd.
The minister also noted that comprehensive reform exercises in states and union territories had also been introduced to attract investors.
All states and union territories are ranked according to the reforms implemented by them. The ranking takes into account the certain designated parameters.
"This exercise has helped in improving the business environment across states," he said.
Prakash also revealed that an Empowered Group of Secretaries had been constituted as a part of the steps taken by the government to attract investors.
To facilitate clearance for investors, India launched Single Window System (NSWS) in September of 2021. Meanwhile, a GIS-enabled India Industrial and Bank had also been launched to aid the investors to identify their most desired location for investments.
Data released by DPIIT, India's highest ever FDI has increased by 1.95 % on year.
Despite the on-going Covid-19 pandemic, the FDI inflow into India in 2020-21 was $81.97 billion. The total FDI included equity capital of unincorporated bodies, reinvest earnings and other capital.
Top investor countries include Singapore at the apex with 27%, US at 18 % and Mauritius at 16 % for the Fiscal Year 2021-22.