- Despite the Centre’s high-octane push for manufacturing through the ‘Make in India’ initiative, foreign investors continue to chase bets in the services sector, India Ratings and Research said on Wednesday.
- It also said a bulk of the foreign direct investment (FDI) in manufacturing was not greenfield or fresh investments.
- “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.” it said.
- “This could be because doing business in the services sector is less complicated than doing business in the manufacturing sector in India.” It added that services FDI rose to $153.01 billion between April 2014 and March 2022, from $80.51 billion between April 2000 and March 2014, while manufacturing grew slower to $94.32 billion from $77.11 billion.
- Within services, trading, telecom, banking/insurance, IT/BPO and tourism were favourites.
- Computer software and hardware have done well, and saw further traction after the roll-out of production-linked incentives, with Apple, Samsung, Flextronics, and Nokia announcing large investments in India.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB