The first two months of 2016 have seen some significant developments for India’s foreign investment scenario. It received a boost from a global report declaring a huge jump in foreign investment inflows. Going with the positive flow, the Government organized the ‘Make in India Week’ to boost its flagship ‘Make in India’ campaign.
Global flows of foreign direct investment jumped 36 per cent in 2015 to an estimated $1.7 trillion, their highest level since the global economic and financial crisis of 2008–2009, the latest UNCTAD Global Investment Trends Monitor reports. The United Nations Conference on Trade and Development (UNCTAD) is the United Nations body responsible for dealing with development issues, particularly international trade – the main driver of development.
The report inter alia indicated that developing economies saw their FDI reaching a new high of US$741 billion, 5% higher than in 2014. Developing Asia, with its FDI flows surpassing half a trillion US dollars. Remained the largest FDI recipient region in the world, accounting for one-third of global FDI flows.
The report goes on to highlight the efforts of the Indian government over the past year to make India attractive to foreign investment. It states – ‘FDI flows to India nearly doubled, reaching an estimated US$59 billion. Measures taken by the government to improve the investment climate have had an impact.’ With this progress, India has further improved its ranking in FDI inflows for 2015. It now holds the seventh position which is two notches higher than last year.
In the World Investment Report 2015, issued by UNCTAD in the month of June 2015. It was stated that ‘India experienced a significant increase of 22 per cent to $34 billion’. Due to this growth, India had jumped 6 positions from the previous year to enter the top 10 economies with the ninth rank.
Make in India Week
The Government continued the focus on the ‘Make in India’ initiative. It hosted the ‘Make in India Week’, a landmark event in Mumbai, India’s commercial capital, from Feb 13 – Feb 18, 2016. This week-long event was inaugurated by the Prime Minister of India, Mr. Narendra Modi, who is the chief patron of the ‘Make in India’ thought process. The event was planned with the aim of showcasing the potential of design, innovation and sustainability across India’s manufacturing sectors in the coming decade. The theme of Make in India Week is innovation, design and sustainability.
The major highlights of the event were:
- Created avenues for showcasing, connecting and collaborating for manufacturing in India
- Promoted investment enabling environment and healthy competitive spirit among States
- Encouraged Design, Innovation, Youth and Startups
- A platform where global CEOs, think tanks, policymakers, diplomats and political leaders converged
The event was successful in generating the following:
- INR 15.20 lakh crore worth of committed business.
- queries relating to INR. 1.05 lakh crore of potential business.
- Visits by 8,90,000 persons
- Representation of 102 countries
- 6,800 Business to Business meetings; 1,400 Business to Government meetings; 45 Government to Government meetings
- Participation of 20 Prime Ministers, Deputy Prime Ministers & Foreign Ministers
- Participation of over 2000 foreign companies
- Participation of over 4000 foreign delegates
The above event has been declared a major success by the Government. The sheer number of visitors, foreign dignitaries and companies indicated a positive signal towards future foreign investment in India. The various proposals and suggestions discussed during the conferences, seminars, and meetings will also be considered by the Government in the coming months. And are expected to be implemented in line with the overall FDI policy.