The manufacturing sector in India has been witnessing proliferating growth in investment, depicting a crucial phase in the country’s economic arena. As per the published dossiers by the Department for Promotion of Industry and Internal Trade (DPIIT), the manufacturing sector engrossed substantial Foreign Direct Investment (FDI), with FDI equity inflows tallying around USD 17.51 billion in the FY 2020-21 itself.
This surge emphasizes intensified investor confidence and exhibits India’s attractiveness as one of the most lucrative manufacturing destinations in the world, as per Colliers India.
The ‘Make in India’ initiative, a government-led campaign aimed at encouraging domestic manufacturing, has played a pivotal role in accelerating investments.
Furthermore, policy reforms and incentives, comprising of the Production Linked Incentive (PLI) scheme, the government has pro-actively incentivised various manufacturing industries, such as automobiles, electronics, and textiles, nurturing an environment conducive to augmented investment.
“The Indian government is actively fostering a conducive environment for global manufacturing companies through strategic initiatives such as the BharatmalaPariyojana Project, the proposed DESH Bill, National Logistics Policy, appropriate taxation and incentives for various sectors, thereby enhancing opportunities in the industrial market. Emulating these measures, Indian states offer a myriad of advantages to industrial players, including incentives, subsidies, robust infrastructure, and essential utilities. These companies also assess critical factors such as Ease of Doing Business, government policies, economic conditions, pricing, labour availability, regulatory environment, supply chain efficiency, proximity to transport nodes, and raw material accessibility when considering entry into the Indian market,” said Swapnil Anil, Executive Director & Head, Advisory Services at Colliers India.
