15 October, 2021
Is India the most preferred location for investment in recent times?
India has received the highest ever FDI inflow in 2020-21, surging by 10 % to USD 81.72 billion. Slated to grow at a rate of 6.7 % in 2022, the Indian economy has witnessed a 10.1% rise in M&A activity year–on-year.
The Government is taking concerted steps to facilitate an investment and business friendly environment in the country. This has been done on the back of measures such as increasing FDI limits across sectors, easing labour & land reforms and reducing red tapism via simpler compliances.
Further, to boost domestic manufacturing, a special economic and comprehensive package of over USD 270 billion – (equivalent to 10% of India’s GDP) has been announced under the Atmanirbhar Bharat Abhiyan (Self-reliant India) scheme. Also, the Government recently announced the National Monetisation Pipeline (NMP) worth an estimated USD 79 billion. The NMP, if managed correctly can be a game changer – as it aims to unlock value in brownfield projects by engaging the private sector, transferring to them revenue rights (and not ownership in the projects), and using the funds so generated for infrastructure creation across the country.
With global companies now re looking at supply chains, India is increasingly becoming an attractive investment destination.
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For further information, please contact:
Rohit Jain, Partner, Economic Laws Practice
RohitJain@elp-in.com
Jignesh Ghelani, Partner, Economic Laws Practice
JigneshGhelani@elp-in.com
