FDI or Foreign Direct Investment has played a significant role for achieving the long-term growth trend in India. The market size of the country with versatile consumer preferences has also been always attractive to the several categories of investors.
Complete and partial lockdowns across the different parts of the world ceased or slowed down caused existing investment projects in 2020. Despite being highly impacted by the first and second waves of COVID-19, the strong fundamentals of India provided optimism for the medium term.
The rising initiatives and acquisitions in the information and communication technology (ICT) industry has played a crucial part for India to be the 5th largest FDI recipient in the world. Major project announcements in the ICT industry included a $2.8 billion investment by online retail giant Amazon in ICT infrastructure in India in the recent time. Besides, investment towards the health, infrastructure and energy has also grown significantly in 2020.
Moreover, India’s Production Linkage Incentive scheme, designed to attract manufacturing and export-oriented investments in priority industries including automotive and electronics can drive a rebound of investment in manufacturing.
The continuation ort renewal of free trade agreement (FTA) with different nations can help to boost investment in India in the coming days.
Source: World Investment Report 2021 | UNCTAD