Role of FDI in Make in India Programme

Ms.Tamanna
B.com, MBA(Hons), Scholar(IMSAR) -MDU Rohtak
tamannarana88@gmail.com

Abstract
Foreign Direct Investment is a source of filling the gap between available and required resources for the
development of the country. Especially in developing countries where we dont have enough saving for
investment we need FDI to sustain the economical growth. Additionally Make In India Programme facilitate
investment, foster innovation, protect intellectual property, and build best-in-class manufacturing infrastructure
for which resource and funds are needed. Thus FDI is considered as true business partner and a potential tool
for development in India. This study tries to analyze the trend of flow of FDI in post liberalization period and its
impact on Indian economy. Further it tries to identify the factors affecting the inflow of FDI.

Make in India campaign was launched by Prime Minister Mr. Narendra Modi to make India a global
manufacturing hub. India aims to increase its manufacturing output contribution from current 16% of its Gross
Domestic Product (GDP) to 25% by year 2025 and Make in India initiative is likely to play a critical role in it.
To achieve this ambitious target, India needs to invest heavily in improving its domestic infrastructure so as it
can attract investments in its manufacturing sector. Foreign direct investment (FDI) will supplement domestic
savings in fulfilling these financial requirements and will also bring latest technology and better execution skills.
This report by studying historical FDI inflow trends and future investment requirements, tries to analyze the role
of FDI in accelerating manufacturing growth in different sectors in India.