Foreign Direct Investments Rise to US$ 12.1 Billion in May: Piyush Goyal

Foreign direct investments into India are increasing, reaching US$ 12.1 billion in May this year, according to Commerce and Industry Minister Mr. Piyush Goyal.

He also stated that the administration is working on a mission mode to reach a US$ 400 billion export objective in 2021-22.

“In 2020-21, India got the greatest amount of FDI it has ever received. It increased by 10% to US$ 81.72 billion, with FDI totaling US$ 12.1 billion in May 2021, which is 203% more than May 2020.” He mentioned this while speaking to a group of industrial groups about encouraging exports.

He stated that exports are increasing at a strong rate, with outbound shipments increasing by 71% over 2020-21 and 23% over 2019-20 from August 1 to 14.

According to the minister, India’s average applied import tariff (tax) has fallen to 15% in 2020 from 17.6% in 2019, and the country’s applicable tariffs are well below the 50.8% bound rate (permissible limit under the World Trade Organization).

In terms of employment, he stated that over 54,000 companies provide around 5.5 lakh jobs, and that 50,000 new businesses would create over 20 lakh jobs in the next five years.

“It is time for our industry to increase our capacity, capability, and commitment to develop resilient global supply chains,” he said, adding that the Centre expects Indian industry to suggest areas for intervention through research, handholding of exporters/manufacturers, and deeper engagement with states and missions.

During the conference, industry proposed measures such as improving export competitiveness, fixing logistical issues, and states playing a more active role in strengthening exporter capacity and expanding foreign markets for Indian products.

They also proposed that pharmaceuticals and chemicals be included in the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme.

According to Mr. Sanjay Aggarwal, President of the PHDCCI, these industries are critical to achieving the US$ 400 billion export objective, and “it is thus recommended to examine these sectors in the RoDTEP plan.”

“Only Rs. 17,000 crore (US$ 2.2 billion) has been set aside by the government for a plan that will refund embedded taxes paid on components used in exports in FY22. It is a fraction of the government’s original projection of Rs. 50,000 crore (US$ 6.73 billion) each year. The RoDTEP scheme’s budget, which includes all tariff lines, has to be raised,” he said.