How best to attract FDI: Four pointers for an ‘investment-friendly charter’
Live MintPrime Minister Narendra Modi called for the creation of an “investment-friendly charter’ during the ninth Governing Council Meeting of the Niti Aayog on 27 July. Drawing from successful investment models in China and Vietnam and feedback from various firms, we propose that an ‘investment-friendly charter’ should consider a four-step plan to make India a top global investment destination. In 2022, India was the world’s seventh largest FDI recipient with $49.4 billion, but it lagged significantly behind countries like China, Brazil, Australia and Canada. While manufacturing attracted an estimated 30% of India’s FDI, significant sectors like electronics and technology remain underfunded, with telecom receiving only $713 million in 2022-23 and $282 million in 2023-24. India’s FDI scrutiny also needs to go beyond investment from countries with which the country shares a land border.