Government Foreign Investment (FDI) It is considering setting up a foreign investment regulatory mechanism to review and monitor it after arrival. Giving this information, sources said that at present the discussion on this has only started. A source said, it has been observed that all countries keep a watch on the foreign direct investment (FDI) coming into their country. People suggest that there should be a monitoring mechanism in India also. This is a way of monitoring the money coming into the country in the form of FDI. This can help ensure that FDI coming into the country is beneficial to the economy and is coming from legitimate sources. India is a major destination for FDI due to its large population, stable policies, demographic dividend, good investment returns and skilled workforce.
Took several steps to attract investment
The government has taken several steps to attract foreign investment. These include promoting ease of doing business by simplifying processes and significantly reducing the compliance burden for the industry. The government has eased FDI norms in many sectors like space, e-commerce, pharma, civil aviation, contract manufacturing, digital media, coal mining and defence. Apart from this, Production Linked Incentive (PLI) scheme has been started for 14 sectors like electronics and large electric products. The official said efforts to promote ease of doing business, zero tolerance towards corruption and focus on emerging sectors like electronics have helped in promoting 'Make in India' and attracting domestic and foreign investment in the country.
FDI inflow increased by 119 percent
Over the last 10 financial years, FDI inflows have increased by 119 per cent, reaching USD 667 billion compared to USD 304 billion in the previous 10 years (2005-14). More than 90 percent of the total FDI has come through the automatic route. According to government data, foreign direct investment into India rose 47.8 per cent to USD 16.17 billion in April-June this fiscal year due to healthy inflows into the services, computer, telecom and pharma sectors. The government is also developing industrial townships to promote domestic manufacturing and attract foreign investors by providing world-class infrastructure. India receives maximum investments from countries like Mauritius, Singapore, USA, Netherlands, UAE, Cayman Islands, Cyprus, Japan, UK and Germany.
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