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FDI in manufacturing reaches $165 billion; 69% growth over last decade
Industry News- Aug 13,24
This sector surge is largely driven by production-linked incentive (PLI) schemes.
India is rapidly becoming a leading destination for foreign investment in the manufacturing sector. Over the past decade, foreign direct investment (FDI) in this sector has surged nearly 69%, reaching $165.1 billion, according to government data.
Jitin Prasada, Minister of State for Commerce and Industry, reported that FDI equity inflows in manufacturing increased by 69% from $97.7 billion in the previous decade (2004-14) to $165.1 billion in the last 10 years (2014-24).
In response to a query in the Rajya Sabha, Prasada highlighted that total FDI inflows amounted to $383.5 billion over the past five financial years (2019-20 to 2023-24), largely driven by production-linked incentive (PLI) schemes.
An HSBC survey indicates that manufacturing activity in India maintained strong growth in July, fuelled by robust domestic demand and new export orders. The HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, registered at 58.1, nearly unchanged from June's 58.3. The PMI has remained above the 50-mark, signalling expansion, since July 2021, marking the longest period of growth in 11 years.
Recent government data reveals that 755 applications across 14 key sectors have been approved under the PLI schemes, with investments totalling Rs 1.23 trillion and creating around 800,000 jobs. The PLI schemes, with an outlay of Rs 1.97 trillion are to bolster manufacturing capabilities, enhance exports, and make Indian companies globally competitive.
Key sectors benefiting from the PLI schemes include mobile manufacturing, electronic components, pharmaceuticals, medical services, automobiles, steel, telecom products, textiles, and food.
(The Statesman)
Jitin Prasada
FDI
PLI
manufacturing
mobile manufacturing
electronic components
pharmaceuticals
medical services
automobiles
steel
telecom products
textiles
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