New Delhi: Gujarat is among the top three states that received the most amount of Foreign Direct Investment (FDI) in the manufacturing sector. The state ranks at number 3 with an investment inflow of 34,186.62 Million US Dollars, the Union government informed the Parliament.

In a reply to a question in Rajya Sabha, Union Minister of Commerce and Industry, Piyush Goyal, provided the following information:

India is rapidly emerging as a preferred country for foreign investment in the manufacturing sector. Foreign Direct Investment (FDI) equity inflow in the manufacturing sectors in the last nine financial years i.e. 2014-23 has increased by 55% to USD 148.97 billion as compared to USD 96 billion in the previous nine financial years i.e. 2005-14.

State-wise details of foreign investments reported through Foreign Direct Investment (FDI) Equity inflow in the country is maintained since October, 2019. Details are given at Annexure-I.

Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains attractive & investor friendly destination. FDI Policy is an enabling policy which is uniformly applicable across the country. To attract more FDI, the Government has put in place an investor friendly FDI policy, wherein most of the sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. The Government has implemented several radical and transformative FDI reforms across sectors such as Defence, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Civil Aviation, Power Exchanges, e- commerce activities, Coal Mining, Contract Manufacturing, Digital Media, Insurance Intermediaries, Insurance, Petroleum & Natural Gas and Telecom, etc.

Along with foreign investment, Government of India has undertaken various steps to boost domestic investments in India. These include introduction of Goods and Services Tax, rationalization in Corporate tax, interventions to improve Ease of Doing Business, measures for reduction in compliance burden, measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP), to name a few.

Government has taken a series of policy initiatives to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth. These includes Atmanirbhar packages, introduction of Production Linked Incentive (PLI) Scheme in fourteen (14) sectors, investment opportunities under National Infrastructure Pipeline (NIP) and National Monetisation Pipeline (NMP), India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), soft launch of the National Single Window System (NSWS), etc. An institutional mechanism to fast-track investments has been put in place, in the form of Project Development Cells (PDCs) in all concerned Ministries/ Departments of Government of India. All the above initiatives/ schemes are implemented across various Ministries/Departments, Central Government and State Governments. DeshGujarat