As the Government’s flagship ‘Make in India’ initiative completes 8 years this month, India is on track to attract USD 100 billion in FDI in the current year. In the year 2021-22, India recorded the highest ever FDI at $83.6 billion. According to the Government, FDI has come from 101 countries and is invested across 31 UTs and States and 57 sectors in the country.
The Make in India’ programme, launched to make India atma nirbhar, or self-sufficient, has made significant accomplishments across 27 sectors, including manufacturing and services. To attract foreign investments, the Government of India had opened most sectors to FDI under the automatic route. FDI inflows in India stood at USD 45.15 billion in 2014-2015 and have since consecutively reached record FDI inflows for eight years.
As per the Government, the Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors, which was launched in 2020-21 to incentivise domestic production in strategic growth sectors where India has a comparative advantage, is expected to generate significant gains for production and employment, with benefits extending to the MSME eco-system.
The Government has also launched a USD 10 billion incentive scheme to build a semiconductor, display, and design ecosystem in India. Further, key initiatives targeting the toy industry, which has historically been import-dependent, such as increasing Basic Custom Duty from 20% to 60%, implementing of Quality Control Order, mandatory sample testing of imported toys, granting more than 850 BIS licenses to domestic toy manufacturers, development of toy clusters etc, has led to remarkable growth in the sector.
Toy imports in FY 21-22 have reduced by 70% to USD 110 million (Rs. 877.8 cr.). There has also been a distinct improvement in the quality of toys in the domestic market. Simultaneously, the efforts of the industry have led to an export of USD 326 million (Rs. 2601.5 cr.) of toys in FY 21-22, which is an increase of over 61% over USD 202 million (Rs. 1612 cr.) of FY 18-19.