FDI and Make in India

Foreign Direct Investment (FDI) is viewed as a source of economic development, modernization, employment, and income growth for emerging economies like India. It acts as a significant catalyst and as the lifeblood of economic development by way of up-gradation of technology, managerial skills, capabilities, etc., The main advantage of FDI is that it supplements the available domestic capital without adding to the national debt. A steady and continuous inflow of foreign investments helps in boosting our Balance of Payments situations and strengthening the value of Indian currency against global currencies. India has liberalized its FDI regimes and pursued several other policies to make India an attractive destination for FDI. Government of India has taken strenuous efforts and initiatives in recent years like dispensing the need of getting approvals at various stages from the Government /other regulatory bodies and relaxing FDI norms across various sectors such as Defence, Public Sector Undertaking Oil refineries, Telecom sector, Stock exchanges, etc., Major initiative in this regard is the "Make in India" launched by the Prime Minister Shri. Narendra Modi in September 2014. Make in India is a powerful, galvanizing call and an invitation to potential investors around the world to transform India into a global design and manufacturing hub. Tackling the problems of unemployment by creation of new jobs, advancement of employability skills and fostering innovation are the major objectives of this initiative. Series of reforms launched by the Government of India to liberalize its foreign investment norms has enabled our country to be one of the world's fastest-growing economies and a top market for foreign direct investments globally. This paper attempts to analyze the FDI in various sectors and the impact of Make in India scheme on FDI