ARJAVA MEDIA
Many factors have contributed to the growth of foreign direct investment (FDI) in India. Some of the factors include growing competitiveness and constant Innovation. According to the World Investment Report 2023, India was the third largest recipient of greenfield projects with 1,008 greenfield project announcements. India’s ranking in the World Competitive Index 2024 jumped three positions to 40th, from 43rd in 2021. India is one of the 50 most innovative countries in the world. These rankings highlight the country’s progress in enhancing its innovation ecosystem and competitive edge. Now India has a vastly improved business environmentclimbing several notches in 10 years.
These changes enabled India to achieve a remarkable milestone in its economic journey, with gross foreign direct investment (FDI) reaching an impressive$1 trillion since April 2000, bolstered by a nearly 26% rise in FDI to $42.1 billion during the first half of the current fiscal year. Such growth reflects India’s growing appeal as a global investment destination, driven by a proactive policy framework, a dynamic business environment, and increasing international competitiveness.
FDI has played a transformative role in India’s development by providing substantial non-debt financial resources, fostering technology transfers, and creating employment opportunities. Initiatives like “Make in India,” liberalised sectoral policies and the Goods and Services Tax (GST) have enhanced investor confidence, while competitive labour costs and strategic incentives continue to attract multinational corporations.
Over the last decade (April 2014 to September 2024), total FDI inflows amounted to $709.84 billion, accounting for 68.69% of the overall FDI inflow in the past 24 years. This robust inflow of investments underscores India’s pivotal role in shaping the global economic landscape.
