New Delhi: India’s total FDI investment till date soared to a new milestone of $1 trillion so far led by a $42.1 billion boost in the first half of the ongoing financial year. Foreign direct investment (FDI) in India drove job creation and promoted technology transfer apart from providing non-debt financial resources, the commerce ministry said in a statement.
The Indian government has supported these inflows through a robust policy framework and by offering a dynamic business environment. A globally cutting edge business environment has also spurred FDI in India, according to the statement. Prime Minister Narendra Modi’s Make in India initiative, liberal business policies, and the GST regime have boosted the confidence of investors in India, the commerce ministry said.
How policies and cost titled FDI scales in India’s favour
India’s competitive labour cost environment coupled with incentives offered by the policy and domestic business environment continue to attract FDI, the statement said. FDI inflows into India surged to $709.84 billion over the past decade, equalling 68.69 per cent of the total FDI inflows since April 2000.
India’s FDI inflows rose to $1 trillion in 24 years driven by a 26 per cent annual jump in FDI inflows in the first half of FY25. India’s competitiveness ranking stood at 40 in the World Competitiveness Index 2024, up from 43 in the 2021 rankings. In terms of innovation, India ranked 48 among the world’s top 20 natioans. On the Global Innovation Index 2023, India ranked 40 out of 132 countries, up from the 81 st ranking in 2015.
India’s record in greenfield projects has been robust with 1,008 such projects secured, according to the World Investment Report 2023. India secured the second-largest share of international project financing with 64 per cent jump seen during the period under consideration. India’s business environment has improved as the country climbed the World Bank’s Ease of Doin Business rankings to the 63rd spot from 142nd spot earlier in 2020. This reflects the government’s efforts to reduce red tape.
From abolishing Angel Tax to slashing Income Tax on companies’ foreign earnings, the government has improved tax complaince while reducign tax burden, further spurring FDI inflows into India.
India’s foreign direct investment journey has been an inspiring one with total inflows soaring to $1 trillion since records were maintained in April 2000. India’s FDI investment surged to $42.1 billion in H1FY25. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
