(MENAFN- KNN India)
New Delhi, Jul 19 (KNN) India aims to significantly increase its annual foreign direct investment (FDI) inflows to propel economic growth, according to a senior official at the country's investment Promotion agency.
Nivruti Rai, Managing Director, Invest India, stated in a Bloomberg TV interview on Thursday that the country's goal is to attract USD 110 billion in FDI annually over the next seven years.
This target represents a more than 50 per cent increase from the current average and would amount to over USD 1 trillion in the next decade.
"We have to work hard toward growing at a rate higher than 10 per cent," Rai said, emphasising the need for substantial economic expansion.
Invest India, a joint venture between the Ministry of Commerce and private business chambers, reports that India's annual average FDI for the seven years ending March 2023 was USD 71 billion.
Despite this ambitious target, official government data indicates a decline in FDI inflows since 2022.
This downturn comes as India positions itself as an alternative manufacturing hub to China, with major companies like Apple Inc. establishing production facilities in the country.
To achieve its FDI goals, Invest India has identified eight priority sectors: electronics manufacturing, automobiles, infrastructure, green energy, food processing, textiles, pharmaceuticals, and foreign institutional investment.
Rai believes focusing on these areas will help India surpass the 10 per cent economic growth mark.
Addressing recent reports of Tesla Inc.'s cooling interest in Indian investments, Rai expressed confidence, stating she was "not concerned" and that the overall trend still points towards increased investment in the country.
As India pursues these ambitious FDI targets, the coming years will be crucial in determining whether the country can attract the level of foreign investment it seeks to drive its economic growth objectives.
(KNN Bureau)
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