India’s IT minister stated on Wednesday that the country is targeting $100 billion in yearly foreign direct investment (FDI) “in the next few years” as Prime Minister Narendra Modi looks to entice investors ahead of a potential reelection run.
“For the next ten years, we anticipate a continuous growth rate of six to eight percent, which is the result of a very well-planned strategy. In an interview with Reuters at the World Economic Forum in Davos, Information Technology Minister Ashwini Vaishnaw added, “This strategy has four major engines.”
He enumerated the four engines as follows: increasing manufacturing, improving the bottom of the population pyramid, investing in physical and digital infrastructure, and streamlining administrative procedures that support ease of doing business.
Since Modi took office in 2014, foreign investors have placed significant bets on India, leading to the expansion of operations by companies like Apple, Samsung, Kia, and Airbus.
This investment has occurred in spite of criticism from certain CEOs who claim that Modi’s protectionist policies in industries like e-commerce, manufacturing, and digital payments frequently favor local enterprises over foreign ones.
The current financial year began in April 2023, and in the first half of the year, India received $33 billion in foreign direct investment inflows. In 2022–2023 it reported $71 billion in foreign direct investment.
India anticipates the highest rate of economic growth among the main global economies this fiscal year, at 7.3%, but the country still has a high proportion of youth unemployment, which will be a big factor in the approaching elections.
Vaishnaw stated that investors now view India as the “most important investment destination,” drawing a comparison between reaching $100 billion and the yearly inflows China collected over a decade.
Vaishnaw has been in charge of India’s efforts to become a global leader in the production of electronics, which is a major component of Modi’s economic agenda.
According to Vaishnaw, India and Apple are in constant communication to increase Apple’s manufacturing and retail presence in the nation. Present estimates place India between 12 and 14 percent of the world’s iPhone shipments.