(Bloomberg) --
India is aiming to boost annual foreign direct investment by more than 50% to help lift economic growth, according to a top official at the government's investment promotion agency.
“For the next seven years, our goal is to draw $110 billion per year which amounts roughly to $1 trillion plus over the next 10 years,” Nivruti Rai, managing director of Invest India, said in an interview with Bloomberg TV's Paul Allen on Thursday. “We have to work hard toward growing at a rate higher than 10%.”
India's annual average FDI in the seven years through March 2023 amounted to $71 billion, according to figures from the investment agency, which is a joint venture between the Ministry of Commerce and private business chambers.
Official data from the government show a decline in FDI into India since 2022, even though the country is positioning itself as an alternative manufacturing hub to China, with companies like Apple Inc. setting up factories in the country in recent years.
Invest India has highlighted eight priority areas for investment: electronics manufacturing, automobiles, infrastructure, green energy, food processing, textiles, pharmaceuticals and foreign institutional investment. Rai believes these sectors will help India achieve economic growth of more than 10%.
Commenting on recent news that Tesla Inc.'s investment in India has cooled, Rai said she was “not concerned” and that the trend is still for higher investment.
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