FDI investments into India will go well in the New Year too

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By Ashish Mitra --
Thursday, 04 Feb, 2021

Judging by the growing interest among overseas investors about the country amid the government’s continuing reform measures to further improve the business climate, the high growth story of foreign direct investments into India will go well in the new year too.

With relaxed FDI norms, defence production will be among the areas that will be looked at for fresh overseas investments in the months ahead while easing compliance burden of businesses will be a priority area.

Irrespective of the global slowdown and the COVID-19 pandemic, FDI into India recorded a significant jump, according to Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Guruprasad Mohapatra.

Facebook’s huge investment in Mukesh Ambani’s Jio Platform helped India receive around USD 43.5 billion FDI during the January-September 2020 period and going ahead, the bullish trend is expected to continue.

“There was a global slowdown. We also thought that the growth patterns of FDI in India which was immensely encouraging might decline post-COVID. But the decline has not happened and the FDI continues to grow well and now the general revival is there in the economy. I do not have any anxieties now, it should go well in 2021,” Mohapatra averred.

In the wake of the COVID-19 pandemic, the government imposed a nationwide lockdown in late March to curb spreading of infections and the move had also severely impacted economic activities.

The government has relaxed FDI norms in sectors such as defence production and that is also one of the areas which one will look forward to, Mohapatra added.

According to him, some big ticket investments will keep happening as overall there is an interest in India’s growth story particularly now because the worst part of the pandemic is over.

FDI investments into India will go well in the New Year too. Judging by the growing interest among overseas investors about the country amid the government’s continuing reform measures to further improve the business climate, the high growth story of foreign direct investments into India will go well in the new year too.

With relaxed FDI norms, defence production will be among the areas that will be looked at for fresh overseas investments in the months ahead while easing compliance burden of businesses will be a priority area.

Irrespective of the global slowdown and the COVID-19 pandemic, FDI into India recorded a significant jump, according to Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Guruprasad Mohapatra.

Facebook’s huge investment in Mukesh Ambani’s Jio Platform helped India receive around USD 43.5 billion FDI during the January-September 2020 period and going ahead, the bullish trend is expected to continue.

“There was a global slowdown. We also thought that the growth patterns of FDI in India which was immensely encouraging might decline post-COVID. But the decline has not happened and the FDI continues to grow well and now the general revival is there in the economy. I do not have any anxieties now, it should go well in 2021,” Mohapatra averred.

In the wake of the COVID-19 pandemic, the government imposed a nationwide lockdown in late March to curb spreading of infections and the move had also severely impacted economic activities.

The government has relaxed FDI norms in sectors such as defence production and that is also one of the areas which one will look forward to, Mohapatra added.

According to him, some big ticket investments will keep happening as overall there is an interest in India’s growth story particularly now because the worst part of the pandemic is over.