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The investment came through FDI has allowed India to focus FDI in India from across the world has been aiding in
on challenges before the economy. acquiring the funds at lower cost with upgraded technology
transfer and greater avenues for employment generation.
Between year 2012 to 2022 India has become one of the We may consider following reasons in favor of Foreign Direct
ten most favorite destinations for FDI due to reasons like Investment:
stable economic policies, availability of low-cost and quality
human resources and obviously unexplored market of Rural 1-Sustainable Growth of Economy
India. Top 5 sectors have received highest FDI Equity Inflow
The Indian economy, according to IMF estimates, will
during FY 2022-23 are Services Sector Finance, Banking,
emerge as the world's third largest economy by 2027,
Insurance, Non-Financial Business, Outsourcing, R&D,
leapfrogging Japan and Germany, with GDP crossing US$5
Courier, Tech. Testing and Analysis, all together (16%), trillion dollars. By 2047, India aspires to be a developed
Computer Software & Hardware (15%), Trading (6%), economy. According to recent estimates, India will need at
Telecommunications (6%) and Automobile Industry (5%) .Net
least 6.5% growth to reach its first milestone in 2027 and
new foreign direct investment into India has risen very about 8%-9% growth to reach the second in 2047. The
rapidly in recent years, with FDI reaching a new record level buoyancy in the economy instills confidence that the
of USD 15,136 million in the 2022-23 fiscal year. India needs country, in the short run, will likely achieve these numbers.
more FDI in manufacturing as well as in infrastructure sector
The pace in the first few years will be critical for a sustained,
because for fast development of economy. It is a well-known
fast-growth trajectory in the long run. In light of the Q1&
fact that Indian consists of 17% of world population yet
Q2 GDP growth of the current fiscal, we have revised our
contributes a measly 2% towards world GDP.
growth estimate for this year to reflect it. We expect GDP
to grow in the range of 6.5% to 6.8% primarily due to festive
Why India requires FDI? spending followed by higher government spending before
After experimenting with the philosophy of mixed economy the upcoming national elections mid year. We believe GDP
influenced by socialistic pattern of former USSR, India growth will be over 6.5% next year as geopolitical
changed its economic policies in its entirety in 1991. But the uncertainties subside, and the global economy bounces back
pivotal requirement to grow economy in an accelerated way on a stronger growth path.
is capital, which was a bigger challenge before the policy
makers soon after the nation had changed its policies 2-Technological Development
towards globalization and liberalization. For countries like We are all aware that the research and development
India where various sectors like Heath, Infrastructure, activities in India are in the developing stage; our universities
Education, Research & Development along with and institutions have not been in a position to generate
technological innovation require huge capital and the
world class research and innovations thus making India
solitary way to get the capital is positively FDI. The flow of
vulnerable and deprived of modern technology. India's
government has been making efforts to improve the quality
of research & development in the institutions, but at the
same time this process will take time to give appropriate
yields. Under these Circumstances FDI can make the
difference, not only to provide instant state of the art
technology but to assist our Universities/Institutions to
prepare infrastructure & skill for the up- gradation.

3-Better use of Natural resources
Like most of the other developing economies of Latin
America & Saharan group of Africa, India has abundant
natural resources which are yet to be explored for the
benefit of the population and economy as well. Since various
issues like Global warming, Carbon footprints and pollution

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