Friday, June 26, 2015

India's Make in India campaign seems to be attracting FDI

According to the World Investment Report , 2015 of UNCTAD:
  • Global FDI inflows declined in 2014.Global foreign direct investment (FDI) inflows fell by 16 per cent to $1.23 trillion in 2014,
  • mostly because of the fragility of the global economy, policy uncertainty for investors and elevated geopolitical risks. New investments were also offset by some large divestments.

  • Developing Asia (up 9 per cent) saw FDI inflows grow to historically high levels. They reached nearly half a trillion dollars in 2014, further consolidating the region’s position as the largest recipient in the world. FDI inflows to East and South-East Asia increased by 10 per cent to $381 billion.

  • Inflows to India increased by 22 per cent to $34 billion. In terms of sectoral composition, manufacturing is gaining strength, as policy efforts to revitalize the sector are sustained, including for instance the launch of the “Make in India” Initiative in mid-2014.

  • In the “Make in India” initiative, the government identified 25 industries in which India has the potential to become a world leader, including the automotive, chemicals, pharmaceuticals and textiles industries. The government has also prioritized environmentally friendly vehicles and launched a new scheme to provide financial incentives for hybrid and electric cars.
Source: UNCTAD, World Investment Report, 2015.


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