India is setting its sights on attracting $100 billion annually in foreign direct investment (FDI), aiming to diversify away from China. Rajesh Kumar Singh, secretary in the Department for Promotion of Industry and Internal Trade, revealed this target in an interview. Despite a decline last year, Singh anticipates the current fiscal year’s FDI to approach the $100 billion mark.
India’s appeal lies in its potential as a manufacturing hub, offering businesses a hedge against geopolitical tensions with a “China plus one” strategy. However, FDI hasn’t matched local manufacturing growth, attributed to factors like global inflation, interest rates, and geopolitical conflicts.
Singh highlighted untapped sectors like electric vehicles and consumer goods, pledging further easing of FDI rules. Modi’s government prioritizes manufacturing growth, evident in initiatives like production-linked incentives driving export-led growth. Plans for new industrial corridors are underway, alongside efforts to streamline visa processes for Chinese technicians crucial to boosting domestic manufacturing.
