Foreign Direct Investment inflow jumped by 90% in Q1
Commerce and industry minister Piyush Goyal on Saturday said India has the potential to become the “manufacturing hub” of the world as it attracted $22.53 billion foreign direct investment (FDI) in the first three months of the current financial year, a 90% year-on-year jump because of several policy reforms to facilitate trade and investments.
The surge in FDI is “an endorsement of its status as a preferred investment destination” amongst global investors, an official statement said. FDI inflow in the first quarter of the previous financial year was $11.84 billion.
Addressing businessmen at the Jain International Trade Organisation (JITO), Goyal said every growth parameter is showing extremely exciting future. “Whether it is FDI, forex reserves, foodgrain reserves, agriculture production, manufacturing, all sectors are on a growth path. We now need to sprint ahead,” another statement quoting the minister said. JITO is a global organisation of businessmen, industrialists, knowledge workers and professionals.
According to the commerce and industry ministry, FDI equity inflow grew by 168% in April-June 2021 at $17.57 billion compared to $6.56 billion in the same period a year ago. Automobile industry emerged as the top sector during the first three months of FY 22 with 27% share of the total FDI equity inflow, followed by computer software and hardware (17%) and services sector (11%), it said.
In the automobile category, majority of FDI equity inflow (about 88%) was reported in the state of Karnataka, it said. Karnataka is the top FDI recipient in Q1 of 2021-22 with 48% share of the total FDI equity inflows, followed by Maharashtra (23%) and Delhi (11%), it said.
Addressing JITO, Goyal said, “Traders and exporters are the twin pistons powering the economic growth engine” of India. He lauded the role of all wealth creators of the country. “You are the people who help the government take several social welfare initiatives to the poorest of the poor,” the commerce ministry statement said quoting him.
“Through a series of programmes, Prime Minister Narendra Modi has transformed the lives of underprivileged, women and children of this country. The business community has helped realise the PM’s vision,” he said.
Under the decisive leadership of PM Modi, India is transforming in every field. Be it ‘ease of doing business’ or ‘ease of living’. “Today, a robust foundation laid in last seven years, inspires us to dream big and write our own destiny,” he said.
The minister said India is fast progressing on its discussions on free trade agreements (FTAs) with several countries such as UK, UAE and the Gulf Cooperation Council (GCC) countries, Australia and European Union (EU).
He said India and US have agreed to aspire for $500 billion trade in the near future. The world is looking for a trusted partner and that partner is India’s business community, he added.
“It may be noted that recently, India emerged as the world’s second most desirable manufacturing destination overtaking US. This shows the potential & promise of India to become the ‘manufacturing hub’ of the world,” the statement quoting Goyal said.
Along with that, we should also become a “Trading hub”, i.e., the place where the world comes to shop, he added.