Foreign firms looking to shift base to India; here’s how much FDI flew in during lockdown
Many multinational companies have shown interest to shift base to India across various sectors such as electronics, retail, e-commerce, automotive, food processing, textiles, etc, commerce minister Piyush Goyal today said in a reply to a question in Rajya Sabha. However, he did not disclose the reasons for the relocation of operations due to the sensitivity of information maintained by the companies. Piyush Goyal added that FDI inflows usually help in augmenting domestic capital and promote employment opportunities across sectors. He apprised the house that the FDI inflow from the USA and other countries in the last fiscal year was $74.39 billion and for April–July 2020, it is $16.26 billion.
As various countries are looking forward to shifting their base out of China after the pandemic emerged, India has been consistently trying to take this as an opportunity and lure the foreign companies to invest in India. The government in April reached out to more than 1,000 companies in the US and through overseas missions to offer incentives for manufacturers seeking to move out of China, Bloomberg had reported citing Indian officials who asked not to be identified.