Make in India will attract FDI; increase forex reserves

June 30, 2016 2:52 pm

The industry focus on “Make in India” will further increase FDI and create more foreign exchange reserves.V. Anbu, Director General, IMTMA
  Manufacturing sector is undergoing changes. Global investors are eyeing India keenly. V. Anbu, Director General, IMTMA explains the key developments that are contributing to this change in outlook.
A step in the right directionInternational crude oil prices have crashed. Crude oil is trading around $35 a barrel in international markets. India is one of the beneficiaries of the fall in crude oil prices. The fall in prices has led to savings on imports giving industries which use oil and its derivatives a fresh lease of life. Auto, paint, aviation, fast moving consumer goods companies are taking advantage of this.
India in addition to being one of the fastest growing economies in the world is also witnessing a low capital account and low fiscal deficit and low inflation. It has been able to reduce fiscal deficit while increasing capital expenditure.
Data from the Reserve Bank of India states that Foreign Direct Investment (FDI) flows into India for April 2015 to February 2016 recorded an increase to $42 billion as against $33 billion for the corresponding period a year ago.

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