India will soon see a surge in foreign direct investment, including from the US, as the country strengthens manufacturing sector under the ‘Make in India’ programme, Minister of State for Finance Jayant Sinha said today.
“FDI is linked to business, brick and mortar on the ground… Discussions that I am having with American business people, I can tell you those business plans, those investments are being worked out and soon we will see surge of FDI coming to India as well,” he said.
Sinha said the government is trying to accelerate promote and encourage manufacturing in India.
“Manufacturing becomes very important area where we can operate”, he said, adding that both the countries stand to benefit from it.
On FDI in multi-brand retail, however, Sinha reiterated the government stand that it would impact millions of people.
“We have been absolutely clear and transparent… We have said, We are not in favour of FDI in retail because it is something which will impact millions and millions of people in India,” he said, at India US Dialogues, organised by The Observer Research Foundation and Network 18.
The dialogue took place amid the US President Barack Obama starting his three-day visit to India.
Sinha further said that there is tremendous opportunity in investing in India. In the last year USD 40 billion was pumped into India both in equity and debt.
“A lot of that came from the US. There are significant returns as India grows and develops and as we build trillion dollar infrastructure,” he said.
Sinha also said India and the US can work together to find financing instruments and investment vehicle that will “generate returns that America need and we get capital that we need to build our infrastructure and power our economy”.
FDI from the US from April 2000 to November 2014 aggregated to USD 13.28 billion or 5.62 per cent of the total flows.