'Make In India' fails to boost manufacturing sector
Govt’s manufacturing push not yielding results; FDI continues to chase less-complicated services sector; FDI mostly concentrated in auto, chemicals, drugs and pharma, metallurgical and food processing: Ind-Ra
Losing Steam
- Govt launched PLI in 2014
- It's active for 14 mfg sectors
- Mfg sector recorded FDI of $94.32 bn as against $77.11 bn during the period
- Services sector recorded highest FDI
- Services FDI almost doubled to $153.01 bn during April 2014 to March 2022
Mumbai: Despite the Narendra Modi government's high-octane push to boost manufacturing through the 'Make in India' initiative, foreign investors continue to chase bets in the services sector, a domestic rating agency said on Wednesday.
India Ratings and Research (Ind-Ra) also said a bulk of the foreign direct investment (FDI) in manufacturing is not Greenfield or fresh investments which should otherwise be the aspirational aspect. "Despite the government's effort to attract more investments in the manufacturing sector through 'Make in India' campaign, the FDI inflow is still tilted in favour of the services sector," the rating agency said. "This could be because doing business in the services sector is less complicated than doing business in the manufacturing sector in India," the agency, an arm of Fitch Ratings, said.
It said services sector FDI increased to $153.01 billion in the services sector during April 2014 to March 2022 from $80.51 billion during to April 2000 to March 2014, while the increase in manufacturing was less fast at $94.32 billion as against $77.11 billion.
