The impact of the government's economic reforms and self-reliant India program is beginning to show on the inflow of foreign investment. Now 34 percent of foreign investors consider India among the top three markets for investment. According to the environment around India in terms of foreign direct investment (FDI), the annual FDI level will reach 120-160 billion dollars by 2025.
This was revealed in the report released on FDI by industry body CII and EY. In the year 2019, FDI inflows in India were 50 billion which is about 1.8 percent of Indian GDP. The first half of the current financial year (April-September 2020) Despite the Corona period, India had a record FDI of $ 30.1 billion.
According to the report, 82 percent of global investors said they would invest in the next two-three years. The survey also revealed that countries like Vietnam, Indonesia, Thailand, Malaysia, Bangladesh are also striving to attract FDI and thus it will not be easy for India to get FDI investment. The three major things in India can see a huge increase in FDI inflows into India.
These include India's large market, skilled artisans, and political stability. 23 percent of foreign investors consider India's large market as the main reason for investment. The Indian economy was worth 2.9 trillion dollars in the year 2019. At the same time, the total economy of countries like Vietnam, Malaysia, Indonesia, Thailand, and Bangladesh was $ 2.6 trillion, which is 10 percent less than the Indian economy.