India Eyes $100 Billion in Annual FDI Inflows Amid "Make in India" Push Over the last ten years, India has attracted $667.4 billion in foreign investments, a marked increase from the $304.1 billion recorded in the previous decade (2004-2014)
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The Indian government is setting an ambitious target to attract $100 billion in annual foreign direct investment (FDI) as part of its "Make in India" initiative. This announcement was made by Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), during a press conference marking the 10-year milestone of the program. Currently, India receives between $70-$80 billion in FDI inflows each year. However, Bhatia expressed confidence that this figure will increase to at least $100 billion annually in the coming years, in line with the government's focus on bolstering domestic manufacturing and infrastructure.
Bhatia stated that the government is targeting much higher investment flows, emphasizing the initiative's success in attracting foreign investment since its launch. He pointed to the production-linked incentive (PLI) scheme, reforms in FDI policies and infrastructure development as key contributors to the initiative's achievements.
Since its inception a decade ago, "Make in India" has significantly enhanced India's manufacturing capacity, with particular progress in sectors such as defence and exports. Over the last ten years, India has attracted $667.4 billion in foreign investments, a marked increase from the $304.1 billion recorded in the previous decade (2004-2014). FDI inflows into manufacturing alone have surged by 69 per cent in the last decade, reaching $165 billion, as reported by Business Standard.
Prime Minister Narendra Modi highlighted the initiative's success in a recent LinkedIn post, underscoring how India has become the world's second-largest mobile phone manufacturer. He noted that in 2014, the country had just two mobile manufacturing units, whereas today there are over 200. Mobile exports have surged from INR 1,556 crore to INR 1.2 trillion—a staggering 7,500 per cent increase.
India's semiconductor industry is also witnessing remarkable growth, with investments worth over INR 1.5 trillion. Five semiconductor plants, expected to produce more than 7 crore chips per day, have already been approved. Semiconductor companies in India are partnering with academic institutions to bridge the prevailing skills gap amid the rising demand for talent in this sector that is expected to touch $80.3 billion by 2028.
The semiconductor industry in India is expected to face a shortage of 250,000 to 300,000 professionals across various verticals, including research and development (R&D), manufacturing, design, and advanced packaging, by 2027, according to a report by TeamLease Degree Apprenticeship. Read more
