NEW DELHI : India attracted record foreign direct investment over the last several years and the trend is expected to continue, considering the major structural reforms being undertaken by the Government, Commerce and Industry Minister Piyush Goyal said on Tuesday.
“As per a recent CII-Ernst & Young report, India is the next global investment hotspot and we have the potential to attract and annual FDI in the range of $120-160 billion by 2025. Last seven years we have seen a record FDI, each breaking the previous record for seven years in a row. I hope to see that continue, looking at major structural reforms being undertaken. This pick up in economic activity is here to stay and the future looks to be extremely bright,” Goyal said at an event organised by industry lobby group CII’s National Conference on MNCs 2021.
According to official data, India had attracted a total foreign direct investments (FDI) inflow of $22.53 billion during April-June quarter up 90 per cent year on year. Total FDI includes equity capital of unincorporated bodies, reinvest earnings and other capital.
Citing one of the latest policy and business reforms, Goyal mentioned the decision of the privatization of Air India, which was bid by the Tata group. Similarly, doing away with retrospective tax law, as well as reforms in the mining and coal sector, are also some of the other reforms.
The minister also urged multinational corporations to use India as a manufacturing base as they can capture the whole world from India. Apart from that it’s time that India starts focusing on integrating its quality standards with the world. The mindset of a particular product being for the domestic market and others for the export market also needs to go, he said.
Regarding free trade agreements (FTAs), the minister said India is negotiating such pacts with countries, including UAE, Australia, UK, European Union (EU), Israel, and GCC (Gulf Cooperation Council) group. “We will have an FTA with UAE in next 60-100 days, an interim agreement with Australia probably around the same time. With the EU, work should start soon (as) they have recently appointed a lead negotiator and we are working to start with Canada,” he said