India – A Global Investment and Manufacturing Hub: FY 2024-25 Update
India is emerging as a global economy, standing as the 5th largest worldwide. With the increase in urbanization and overall population, the demand for sustainable solutions and advanced technologies is boosting. The Government of India has been actively creating a favorable environment for international businesses through various initiatives. One of the key initiatives is ‘Make in India’, launched in 2014, which aims to position the country as a global manufacturing hub. This initiative encourages multinational corporations to invest in local production, thereby reducing dependence on imports and enhancing domestic capabilities. There have been several other initiatives by the Union Government such as ‘Aatma – Nirbhar’, ‘Ayushman Bharat’, and ‘Digital India’. Additionally, the government has implemented reforms to streamline processes and improve the ease of doing business.
India's evolving economic landscape offers significant opportunities for foreign direct investments (FDIs). In the context of renewable energy, India has set ambitious targets to achieve 500 GW of non-fossil fuel capacity by 2030, reflecting a strong commitment to sustainable development. This focus on renewables presents opportunities for international organizations specializing in solar, wind, and other sustainable technologies. Further, the semiconductor industry represents another promising area for investment. As India aims to establish itself as a key player in the global semiconductor supply chain, the Union Government has introduced policies to encourage domestic manufacturing and attract foreign investment. For instance, in March 2024, the Hon’ble Prime Minister Shri Narendra Modi launched three semiconductor units (two, by the Tata Group and, the rest by CG Power and Industrial Solutions Limited under the Modified Scheme for Semiconductor Assembly, Testing, Marking and Packaging (ATMP)) in Gujarat and Assam. Other sectors have also gained traction; for example, areas of interest for foreign investments in the electronics sector include research, innovation, and skill development in emerging areas such as augmented reality (AR), virtual reality (VR), drones, robotics, and additive manufacturing.
Thus, the future perspective for foreign organizations in India remains optimistic and significantly potential, driven by robust economic growth. To that front, Pukka Partners assists global organizations including Fortune 500 companies in assessing the GTM, market expansion strategies, and gaining other related advisory solutions.
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