Govt initiatives like PLI helping attract foreign investors in India: CII

The government initiatives such as Make in India and production linked incentive schemes for different sectors are helping attract foreign investors to set up bases in India, according to industry chamber CII.

In a letter to Commerce and Industry Minister Piyush Goyal, CII Director General Chandrajit Banerjee said that the government's increased investments in infrastructure such as roads, railways and ports are making the domestic industry more competitive.

The policy shift within India has also occurred at the same time as geopolitical conditions have become favourable for India, with many global companies looking to diversify their geographical base, the letter, dated November 5, said.

"FDI inflows have increased from $ 45.14 billion in 2014-15 to $ 70.95 billion in 2023-24, indicating the growing interest of foreign investors for setting up base in India," it said, adding that the PLI schemes have attracted huge investments.

It added that India's manufacturing capabilities across sectors such as auto, electronics, machinery, chemicals, shipping, railways and others are expanding rapidly.

"You (the minister) have addressed each component of the Make in India initiative, be it ease of doing business, logistics and connectivity, investment promotion, or external engagement, with great insight, innovative policies and phenomenal implementation," the letter said.