Over The Past 2 Years, India's Manufacturing Outsiders' Direct Investment (FDI) Has Continued To Decline.

India Prime Minister Moody's has been actively promoting the "Make in India" policy in India since taking office in 2014, and is committed to improving the Ease ranking of Ease of Doing Business. However, the demand for attracting foreign direct investment in manufacturing industry (FDI) is not expected, and the global and India market demand is also declining due to the combined influence of the US, China trade wars and other geopolitical tensions.

According to statistics from the Central Bank of India (RBI), in 2014, 15, the amount of direct investment made by India manufacturing outsiders amounted to $9 billion 600 million, 2015-16 in the year of 8 billion 400 million dollars, 2016-17 in the year of 11 billion 700 million dollars, and then influenced by uncertain factors such as Demonetisation and GST, foreign manufacturing industry began to wait and see, 2017-18 years only 7 billion dollars.

According to the RBI annual report, the growth rate of India's (2018-19) industrial production index (IIP) declined to 3.8%, a 3 year low. Although the India rupee (Rupee) moderately depreciated, exports remained flat, indicating that external demand in the international market is the key to determining export performance.

As for the financial services and the electricity sector, India's cumulative outgoing direct investment growth rates were 25% (2014-15), 23% (2015-16), 8% (2016-17), 1% (2017-18) and 6% (2018-19) over the years, although it also showed a sharp decline. Compared to the manufacturing sector, foreign investment in financial services and power industry has been gradually warming up in recent years.

To boost the manufacturing industry, the India government announced last week that it will open up 100% of foreign capital to undertake foundry production (Co Ntract Manufacturing), which is expected to attract foreign capital manufacturing to expand investment in India.