2 weeks ago
Assocham Urges India to Deepen FDI Economic Integration
India has received much more foreign investment over the past 25 years.
Foreign investment means money from companies or investors based in other countries.
An Assocham study says India should do more than simply attract this money.
It should make it easier for investors to start, run and grow businesses.
The study says foreign investment can bring technology, jobs, exports and access to global markets.
Services and computer-related industries have received a large share of the investment.
Other important areas include automobiles, medicines, chemicals, infrastructure, electronics and renewable energy.
The report recommends better approvals, land, transport, utilities, finance and coordination between governments.
It also says investment should create stronger connections with Indian companies and the wider economy.
An Assocham study called for a new phase of India’s FDI policy focused on sustained and expanded investment.
Total FDI inflows rose from $4 billion in FY2000-01 to about $95 billion in FY2025-26.
FDI equity inflows increased from $2 billion to $59 billion over the same period.
Services, computer software and hardware account for nearly one-third of cumulative FDI equity inflows.
The study recommended faster approvals, better infrastructure, lower land costs, improved logistics and stronger investor support.
- Who
- Assocham, including President Nirmal Minda and Chief Economist Dr SP Sharma, issued the recommendations.
- What
- A study recommended that India’s next FDI policy phase focus on sustainable, expandable and economically integrated investment.
- Where
- India.
- When
- The study was reported on Monday and covers FDI trends from FY2000-01 to FY2025-26.
- Why
- To increase the wider benefits of FDI, including domestic value addition, employment, exports, technology and links with Indian enterprises.
Key facts
- Total FDI inflows
- Rose from $4 billion in FY2000-01 to around $95 billion in FY2025-26.
- FDI equity inflows
- Rose from $2 billion in FY2000-01 to $59 billion in FY2025-26.
- Cumulative total FDI
- India received $1.16 trillion between FY2000-01 and FY2025-26.
- Cumulative FDI equity
- India received $791 billion between FY2000-01 and FY2025-26.
- Leading sectors
- Services and computer software and hardware account for nearly one-third of cumulative FDI equity inflows.
- Other investment areas
- Automobiles, pharmaceuticals, chemicals, infrastructure, electronics and renewable energy also received significant investment.
- Key recommendations
- Improve investor aftercare, single-window approvals, land access, logistics, utilities, compliance, finance, infrastructure and government coordination.
Quotes
Nirmal Minda
President of Assocham
“India has built a strong foundation for attracting Foreign Direct Investment. The next phase should focus on making it easier for investors to establish, operate and expand businesses in India, while strengthening the wider economic benefits of such investments.”
thehansindia.com
“Its wider impact depends on how much investment creates domestic value addition, employment, exports, technology and linkages with Indian enterprises.”
thehansindia.com
Sources
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