Ever since covid started China’s production and supply has come to a standstill. Now global investors are looking at countries that can replace China. Confidence in China, once called the engine of the global economy, is now steadily declining. The situation has worsened after the conflict with America. American companies are constantly trying to find a new home for themselves. In such a situation, now American and European companies are very fond of China’s neighboring country, India.
As the situation in China became unstable, Apple turned to India. After that, Apple, one of the biggest tech companies in the world, said that India is the only country that can replace China. After which other companies are also slowly but surely turning towards India. On the other hand, India has also made a plan to take advantage of this situation, which can earn more than 100 billion dollars, that is, more than 8 lakh crore rupees disappear in one fell swoop. Let us also tell you what such a scheme has been made by the Government of India.
100 billion dollar plan
America and European countries are looking at India as another option to reduce their dependence on China. India has started preparations to take advantage of this situation. For this, India has planned 100 billion dollars every year. The Government of India has set an FDI target of more than 100 billion dollars i.e. more than 8 lakh crore rupees every year. That means any investor coming out of China should turn to India only.
According to a Bloomberg report, DPIIT Secretary Rajesh Kumar has informed that the government aims to raise investment by an average of $100 billion over the next five years. The atmosphere in the country regarding FDI is absolutely positive. It is continuously increasing. In the last five years till March 2023, the country has received an average investment of $70 billion per year. Which has been increased to 100 billion dollars in the current financial year. Currently, India is the fastest growing economy in the world. Where some companies are coming to India on their own. So there are still some companies that are looking for an alternative to China. India is trying to attract such companies.
Why is FDI in manufacturing low?
The government is giving incentives to international companies to boost production and become the world’s largest supplier. Which is also named as PLI. Apple, Samsung are availing this PLI scheme. Even then, FDI in manufacturing in the country has not come as expected. In this regard, Rajesh Kumar Singh said in a media report that inflation is high in developed countries. Also, due to geo-political tensions and high risk factors related to emerging markets, FDI is seen to be low. He further said that despite all this, India has a lot of growth potential in other sectors such as EVs, electronics and other consumer goods. He said the government would work on further easing of FDI rules.
-Rahul Dubey