Investment in India

Overview

Last updated: Nov, 2023

Introduction

Over the years, India has emerged as one of the fastest-growing economies in the world, and it now offers a growing and thriving environment for investments, both domestic and foreign. With the largest youth population in the world, it provides prospective investors with a highly skilled workforce and a strong work ethic.

India's huge domestic consumption, led by the private sector, has played a major role in the country's growth. India has an estimated middle class of 400 million people who are the main drivers of consumption expenditure. This emerging middle class and increasing disposable incomes are the largest factors behind the increasing domestic consumption in India. It is estimated that the private consumer market in India will increase four times by 2025. The present government is also focusing on rural areas and farmers, as rural India is also emerging as an upcoming market for all types of consumer goods.

A host of government initiatives has also enabled India's investment growth, which includes developing India's financial system, improving the infrastructure, and relaxing FDI norms. The Government has propagated an investor-friendly FDI policy, in which most sectors are open for 100% FDI under the automatic route. India's FDI policy is also reviewed on an ongoing basis to ensure that India remains an attractive and investor-friendly destination.

Market Activity

India's economy showed great signs of recovery in FY22 after the COVID-19 pandemic. India’s nominal gross domestic product (GDP) at current prices is estimated to be at Rs. 301.75 trillion (US$ 3.62 trillion) in 2023-24. Additionally, the Nominal GDP at current prices in Q1 of 2023-24 was Rs. 70.67 trillion (US$ 848.92 billion), as against Rs. 65.42 trillion (US$ 785.85 billion) in 2022-23, estimating a growth of 8%. Real GDP at constant prices (2011-12) in the first quarter of 2023–24 is estimated at Rs. 40.37 trillion (US$ 484.94 billion), showing a growth of 7.8% as compared to the first quarter of 2022-23 estimated at Rs. 37.44 trillion (US$ 449.74 billion). These figures make India the fastest-growing major economy in the world, and this economic growth has translated to the investment market in India. Retail investors, mutual funds, and PE/VC firms have all stepped up their domestic investments in the Indian market.

The share of retail investors in equity holding listed on the National Stock Exchange (NSE) reached an all-time high of 27% year-on-year (YoY) in (April-August) 2023. In Q1 of 2023, retail holding went up in 908 companies listed on NSE. As on June 30th, 2023, the value of retail holdings was only Rs. 21.69 lakh crore (US$ 260.97 billion). As per a report by Zinnov, the share of Indian retail investors in listed equities has increased from 36% in FY17 to 41% in FY22, which was mostly fueled by the launch of new-age financial products like cryptocurrency, digital gold, non-fungible tokens, and small cases. According to BSE, the number of registered investors on BSE has jumped nearly 24% year-on-year.

India ranked 4th globally in tech venture capital (VC) investments recording US$ 24.1 billion in 2022. According to a report by Startup Genome, India has 429 scale-up companies with a total VC investment of US$ 127 billion and a cumulative tech value investment of US$ 446 billion. Moreover, India ranks 4th globally in terms of start-ups that have secured over US$ 50 million in disclosed venture capital (VC) investment.

On the FDI front, according to the Department for Promotion of Industry and Internal Trade (DPIIT), India's cumulative FDI inflow stood at US$ 937.58 billion between April 2000 and June 2023; this was mainly due to the government's efforts to improve the ease of doing business and relax FDI norms. The total FDI inflow into India from January to June 2023 stood at US$ 17.56 billion, while the FDI equity inflow for the same period was US$ 10.94 billion.

From April 2000–June 2023, India's service sector attracted the highest FDI equity inflow of 16% amounting to US$ 105.40 billion, followed by the computer software and hardware industry at 15%, amounting to US$ 95.88 billion, trading at 6%, US$ 40.05 billion, telecommunications at 6%, US$ 39.27 billion and automobile industry at 5%, US$ 35.14 billion. India also had major FDI inflows during April 2000-June 2023, coming from Mauritius at US$ 164.83 billion with a total share of 26%, followed by Singapore at 23% (US$ 151.16 billion), the USA at 9%, (US$ 61.26 billion), Netherlands at 7%, (US$ 45.28 billion) and Japan at 6%, (US$ 39.94 billion).

India's Private Equity (PE)/Venture Capital (VC) investment environment is also scaling new heights, with increases in deal size, deal activity, and fundraising, as well as improvements in term sheets and benchmarking practices. Private Equity-Venture Capital (PE-VC) funds invested US$ 6 billion (across 139 deals) in India-based companies during the quarter ended September 2023. 1,261 deals were recorded of more than US$ 46 billion of Private Equity (PE) – Venture Capitalist (VC) investments in 2022.

Around 130 SME companies went public in 2023 (till October 2023), raising a total of Rs. 3,540 crore (US$ 426.33 million) through IPOs.

Recent Developments/Investments

Recent speedy infrastructure investments, the inclusion of more sectors under the PLI scheme, an increase in public investments, and increasing PE/VC activity have led to plenty of investments in the Indian market. A stabilizing economic backdrop and financial oversight have provided investors with a perfect opportunity to invest in the country and have made India a rising economic powerhouse. Some of the recent investments and developments in this space are as follows:

According to the IVCA-EY monthly PE/VC roundup, August 2023 recorded investments worth US$ 5.2 billion.
In October 2023, Reliance Retail Ventures Limited (RRVL) announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs. 4,966.80 crore (US$ 596.63 million) into the company.
In October 2023, NCLT approved resolution plan of Himadri Speciality Chemical and Dalmia Bharat Refractories to acquire Birla Tyres.
In October 2023, Tata Motors acquired 27% in digital platform Freight Tiger.
In October 2023, Bajaj Finance acquired 26% stake in Pennant Technologies for Rs. 267.50 crore (US$ 32.18 million).
In September 2023, Hindalco signed a technology partnership with Italy-based, Metra SpA, to bring the latest aluminium extrusion technology to India for building rail coaches.
In September 2023, US chipmaker, Nvidia Corporation announced separate partnerships with Reliance and Tata group companies to help them develop AI-powered supercomputers, AI clouds and generative AI applications.
In September 2023, Singapore's investment firm, Temasek led US$ 140 million Ola Electric funding at a US$ 5.4 billion valuation.
In September 2023, Shree Renuka Sugars has inked a share purchase agreement to acquire 100% stake in Anamika Sugar Mills.
In September 2023, Reliance Retail Ventures acquired majority stake in Alia Bhatt’s Ed-a-Mamma brand.
In August 2023, Jewellery retailer Titan acquired another 27.18% stake in CaratLane for Rs. 4,621 crore (US$ 556.01 million).
In August 2023, Qatar Investment Authority (QIA) invested Rs. 8,278 crore (US$ 994.39 million) in Reliance Retail Ventures Limited (RRVL) to get an equity stake of 0.99%.
In August 2023, the global investment firm Temasek invested Rs. 1,200 crore (US$ 144,15 million) in its electric vehicle subsidiary Mahindra Electric Automobile Ltd (MAEL).
In August 2023, Brookfield Asset Management entered into an agreement with Reliance Industries (RIL) to invest US$ 20-30 billion over the next decade in Australia's renewable energy sector.
In August 2023, Walmart paid US$ 1.4 billion to buy out hedge fund Tiger Global's stake in Flipkart.
In July 2023, Jio Financial partnered with BlackRock to launch an asset management firm with a combined investment of US$ 300 million.
In July 2023, U.S.-based investment firm, Bain Capital announced that it has entered into an agreement to acquire 90% of Adani Capital and Adani Housing.
In July 2023, Bikaji Foods International acquires 49% stake in Bhujialalji for Rs. 5.10 crore (US$ 6,21,946.53).
In July 2023, India's leading telecom firm, Bharti Airtel has acquired additional 20.6% stake in the SD-WAN startup, Lavelle Networks.
In July 2023, Adani Enterprises acquired approximately 30% ownership in Start Enterprises Pvt Ltd (SEPL), the parent company of Trainman, an online platform for booking train tickets.
In July 2023, Walt Disney is considering options for its Star India business, including a joint venture or sale, as it looks to help the India business grow and reduce costs.
In July 2023, French advertising and public relations company Havas’s India arm has announced the acquisition of PivotRoots.
In June 2023, Allcargo Logistics completes acquisition of 30% stake in Gati-Kintetsu Express (GKEPL) for Rs. 406.71 crore (US$ 49.48 million).
In June 2023, BPEA EQT group (formerly Baring Private Equity Asia), in partnership with ChrysCapital, is set to acquire around 90% stake in Housing Development Finance Corporation's wholly-owned education financial subsidiary HDFC Credila Financial Services Ltd (HDFC Credila) for Rs. 9,060.5 crore (US$ 1.10 billion).
In June 2023, Private equity (PE) investors Blackstone Inc., BPEA EQT ((formerly Baring Private Equity Asia), CVC Capital Partners, and General Atlantic Service Company are competing to acquire Mumbai-based Indira IVF Hospital Pvt. Ltd.
In June 2023, Tata Communications is set to acquire US-based enterprise messaging firm Kaleyra for US$ 100 million in an all-cash deal.
In June 2023, Asian Paints acquires an additional 11% stake in White Teak.
In May 2023, JSW Steel to acquire National Steel and Agro Industries for Rs. 621 crore (US$ 75.73 million).
In April 2023, foreigners bought US$ 1.4 billion of Indian equities, followed by US$ 5.3 billion in May (the highest investment by FPIs in the last six months), and US$ 3.7 billion in June.
From January-February 2023, the startups managed to raise US$ 2.91 billion across 258 deals.
Private equity investment in real estate remained stable in FY23 at US$ 4.2 billion, of which 22% contribution came from domestic investors. Delhi-NCR market received 32% of the total investment.
In Q1 (January-March) of 2023:
- The largest funding deal was the Rs. 5,700 crore (US$ 700 million) investment by global private equity investors, GIC and Abu Dhabi Investment Authority (ADIA) in clean energy-focused, Greenko Group.
- Delhi-NCR topped the chart for highest PE investments (by value) in a city, while Bangalore topped the chart for highest VC investments (by volume and value) in a city.
- 110 DPIIT registered startups raised funding worth Rs. 7,427 crore (US$ 904 million).
- IT & ITeS companies topped the industry chart attracting investments worth US$ 2.28 billion led by the investments in Lenskart, PhonePe, and InsuranceDekho.
- Funds with AIF vehicles participated in 90 investments worth Rs. 13,852 crore (US$ 1.69 billion). The largest deal involving funds with AIF vehicles was the US$ 150 million investment in insur-tech company InsuranceDekho (by Avataar Venture Partners, InvestCorp Group, LeapFrog, TVS Capital, and Goldman Sachs), followed by the US$ 118 million investment in organic food exporter Suminter India Organics (by responsibility, IFU, Capricorn, and Morgan Stanley).
- Super angels and angel networks made 96 investments. The largest funding deal involving angel investors was the US$ 150 million investment in seafood unicorn Licious, which saw the participation from Mr. Haresh Chawla (Partner at True North), Mr. Aman Gupta (Co-Founder and CMO at Boat Lifestyle) and Mr. Nithin and Mr. Nikhil Kamath (Founder & CEO at Zerodha).
In February 2023, PE investments stood at Rs. 8,368 crore (US$ 1.01 billion) and VC investments stood at Rs. 1,613 crore (US$ 195 million) across 35 deals.
The largest VC investment during February 2023 was the US$ 20 million investment each in electric vehicle (EV) fleet operator Zypp Electric (led by Taiwanese EV maker and battery-swapping company Gogoro) and in commerce enablement platform for MSMEs Mintoak (led by PayPal Ventures with participation from British International Investment or BII and existing investors).
The largest funding deal announced during February, 2023 was the Rs. 1,200 crore (US$ 144.7 million) investment by Multiples PE and State Bank of India in Murugappa Group’s EV unit Tl Clean Mobility.
PE/VC investments in November 2022 recorded US$ 4 billion, 18% higher than in October 2022. Moreover, November 2022 recorded seven large deals (deals of value greater than US$ 100 million) aggregating US$ 2.8 billion. The buyouts were the highest in terms of value followed by US$ 1.8 billion across four deals followed by Startup investments were the second highest, recording US$ 903 million across 51 deals.
November 2022 recorded total fundraises of US$ 1.9 billion, as compared to US$ 610 million raised in November 2021.
In September 2022, PE/VC investments in India stood at US$ 2 billion across 73 deals.
Infrastructure was the top sector in November 2022, driven by investments in clean energy, with US$ 1.6 billion in PE/VC investments across six deals.
Startup PE/VC investing in India stood at US$ 24 billion in 2022-23.
Sequoia Capital India was the most active VC investor in 2022 with 73 investments, followed by Accel India and Better Capital with 57 investments each. Tiger Global took third place with 50 investments.
In September 2022, FDI equity inflow into India stood at US$ 2.97 billion.
In November 2022, the buyouts were the highest in terms of value followed by US$ 1.8 billion across four deals followed by Startup investments were the second highest, recording US$ 903 million across 51 deals.
Private equity and venture capital firms invested US$ 46 billion across 1,261 deals in calendar year 2022.
In 2022, M&A deals in India soared to US$ 126.09 billion across 1,185 deals. However, the growth rate of 141% was due to the HDFC Bank and Housing Development Finance Corporation merger which was worth US$ 57 billion.
In January 2023:
- The largest PE investments during the month were made by well-known US headquartered international PE firms. The largest funding deal announced during the period was the Rs. 2,868 crore (US$ 350 million) investment by General Atlantic in Walmart-Flipkart Group payments and financial services ‘Unicorn’ company PhonePe, which had recently chosen to move its domicile from Singapore to India.
- The largest VC investment during the period was the US$ 17 million Series A investment in learning management system startup Toddle led by Sequoia Capital India with participation from Tenacity Ventures, Trifecta Capital, Matrix Partners, Beenext, and Better Capital.
- Deep-tech battery startup Log9 bagged US$ 40 million from Amara Raja Batteries Ltd and Petronas Ventures.
- On 17th January 2023, Sequoia Capital invested US$ 15 million in CloseFactor as a lead investor.
- Virohan, a healthcare edtech start-up raised US$ 7 million from Blume Ventures, with participation from Bharat Inclusion Seed Fund, Rebright Partners, and others.
In December 2022:
- A Gurugram-based battery swapping solutions provider, Battery Smart raised Rs. 75 crore (US$ 9.24 million) from Stride Ventures.
- A food-tech start-up, SaveEat has raised US$ 5 million from Credent Investment Pvt Ltd to expand its business operations in Mumbai, Pune, and Bengaluru.
- Aquaconnect, an aquaculture platform bagged Rs. 120 crore (US$ 15 million) from Lok Capital, Louis Dreyfus Company Ventures, and Suneight Investment for business expansion.
In November 2022:
- Energy storage solutions startup Clean Electric bagged Rs. 18 crore (US$ 2.2 million) in a funding round led by early-stage venture capital firm Kalaari Capital.
- Prismforce, a SaaS startup, raised US$ 13.6 million in Series A funding led by Sequoia Capital India to enhance its product suite, strengthen marketing, and grow its talent base.
- CashKaro raised Rs. 130 crore (US$ 16.02 million) in a Series C funding round led by Affle Global Pte. Ltd (AGPL) for the expansion of new technology and product development.
In October 2022:
- Shardeum, an EVM-based shared blockchain startup raised a seed round of Rs. 150 crore (US$ 18.28 million) from 60 investors.
- A D2C footwear start-up, Yoho raised Rs. 20 crore (US$ 2.46 million) from Softbank Vision Fund, Rukam Capital, and Vijay Shekhar Sharma (founder of Paytm) along with participation from other investors.
- A real estate developer, Urbanrise/Alliance Group raised Rs. 260 crore (US$ 31 million) from Motilal Oswal Financial Services Ltd (MOPE).
In September 2022:
- Singapore-based investment firm Temasek has invested US$ 85 million in Goa-based diagnostics chain, Molbio Diagnostics Pvt. Ltd, which values the company at US$ 1.6 billion.
- Google-backed DotPe has raised US$ 54.4 million in a funding round led by Singapore’s sovereign fund Temasek.
- In its most recent round of fundraising, the space technology startup Skyroot Aerospace raised US$ 51 million, with GIC of Singapore serving as the round's lead investor.
- Education-focused non-bank lender, Avanse Financial Services, raised roughly Rs. 390 crore (US$ 47.35 million) from its current shareholders, Warburg Pincus, and International Finance Corporation (IFC).
- The Hero Group and US private equity company KKR will invest US$ 450 million in Hero Future Energies (HFE). Along with eventually entering new markets, the investment will assist HFE in increasing capacity and capabilities across technologies like solar, wind, battery storage, and green hydrogen.
- Reliance Power has raised Rs. 933 crore (US$ 113.28 million) through a private placement of shares to VFSI Holdings, an affiliate of investment firm Varde Partners.
In FY22, net inflows into mutual funds stood at Rs. 2.46 lakh crore (US$ 30.93 billion).
In June 2022:
- India’s sovereign wealth fund, National Investment and Infrastructure Fund (NIIF) announced that it would invest Rs. 2,250 crore (US$ 282 million) to acquire around 22.5% stake in Hindustan Ports Pvt. Ltd (HPPL).
- Abu Dhabi Investment Authority (ADIA) announced plans to invest Rs. 2,200 crore (US$ 275.89 million) into IIFL Finance for a 20% stake in the company.
- Shriram Transport Finance Company (STFC) secured a loan of US$ 250 million from the US Development Finance Corporation (DFC).
In May 2022, Bodhi Tree announced plans to invest US$ 600 million in ALLEN Career Institute to build India's largest test-prep company.

Government Initiatives

The steps taken by the Government during the last few years to attract investments have borne fruit, as is evident from the record volume of FDI inflow that was received in the country in FY22. The government has launched policies that significantly simplify the ease of doing business, as evidenced by India's jump from rank 142 in 2015 to rank 63 in 2020 in the Doing Business Reports of the World Bank. Some of these policies are:

India’s new rules for environmental, social and governance investments and ratings are likely to attract more investors to the nation’s US$ 1.4 billion market and serve as a model for other countries. Over the last two years, India has implemented many measures to regulate its market for green and other assets, most notably permitting domestic fund managers to create plans under six types of ESG strategies.
Securities and Exchange Board of India (Sebi) announced disclosure norms for foreign portfolio investors (FPIs) will come into effect from November 1st, 2023. Under these regulations, overseas funds that hold more than 50% of their equity investments in a single Indian corporate group or have more than Rs. 25,000 crore (US$ 3.01 billion) of equity assets under management (AUM) in the Indian market, will have to provide detailed information about their beneficial owners.
The Reserve Bank of India has taken a number of actions to increase foreign exchange inflows. These actions consist of:
- Exempting additional Foreign Currency Non-Resident (Bank) [FCNR(B)] and Non-Resident (External) Rupee (NRE) deposits from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
- Authorization for banks to accept new FCNR(B) and NRE deposits without regard to current interest rate regulations until the end of October 2022.
- Inclusion of all new issuances of 7-year and 14-year G-Secs under the Fully Accessible Route (FAR) for FPls.
- Exemption from the short-term limit for FPls' investments in G-Secs and corporate debt made until October 31, 2022.
- Permitting FPI in commercial paper and non-convertible debentures with an original maturity of up to one year.
- A temporary increase in the limit for external commercial borrowings (ECBs) under the automated route from US$ 750 million or its equivalent per fiscal year to US$ 1.5 billion.
- Increase in the all-in cost ceiling under the ECB framework by 100 basis points, subject to the borrower having an investment grade rating.
- Permission for AD Cat-I banks to use foreign currency borrowings made abroad to fund foreign currency loans to organisations for a variety of end uses other than exports.
The introduction of the Goods and Services Tax, easing liquidity problems of NBFCs and Banks, the reduction of corporate tax, improvements to the business environment, changes to the FDI policy, reduction in Compliance Burden, policies to support domestic manufacturing through public procurement orders, and the Phased Manufacturing Program (PMP) are just a few of the actions taken by the government to encourage domestic investments.
In the Budget 2023-24 session, it was informed that the Government has decided to continue the 50-year interest-free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of Rs. 1.3 lakh crore (US$ 16 billion).
The National Logistics Policy (NLP) aims to decrease the cost of logistics and make it to par with that of other developed nations. A comprehensive approach to address cost inefficiencies is being laid down by establishing an interdisciplinary, cross-sectoral, multijurisdictional framework for enhancing the entire logistics ecosystem. This would bolster India's economy, provide employment opportunities, and make Indian products more competitive in the global market. It was launched on September 17, 2022.
Foreign Exchange Management (Overseas Investment) Regulations, 2022 is an updated legal framework for foreign investment that offers simplification of the previous framework and has been adjusted to reflect the current dynamics of business and the economy. The "Ease of Doing Business" has been greatly improved with the addition of clarity about overseas direct investment and overseas portfolio investment, as well as the transition of numerous overseas investment-related transactions that are now under an automatic route that was previously under the approved route.
The Government of India increased FDI in the defence sector by liberalizing it to 74% through the automatic route and 100% through the government route.
The Foreign Investment Facilitation Portal (FIFP) is a new online single-point interface of the government for investors to facilitate Foreign Direct Investment proposals to evaluate and further authorize them under the Government approval route.
The sectoral cap for the pharmaceutical industry has been lowered, 74% of FDI is permitted in the Brownfield Pharma sector via the automatic method, and 100% is permitted via the approved route.
In the Civil Aviation Sector, 100% FDI is allowed under automatic route in Brownfield Airport projects.
For Single Brand Retail Trading, local sourcing norms have been relaxed for up to 3 years and 100% FDI is allowed under automatic route.
The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced a dynamic reform exercise called the Business Reforms Action Plan, which ranks all the states and UTs in the country based on the implementation of designated reform parameters. The reforms have focused on streamlining the current rules and procedures and getting rid of unnecessary requirements and steps. The Action Plan covers multiple reform areas such as:
- Investment Enablers
- Online Single Window System
- Land administration and Transfer of Land and Property
- Construction Permits Enabler
- Labour Regulation Enablers
- Environment Registration Enablers
- Inspection Enablers
- Paying Taxes
- Obtaining Utility Permits
The government has implemented an investor-friendly strategy to encourage FDI, and the majority of sectors are accessible to 100% FDI under the automatic route. In order to keep India a desirable and welcoming place for investors, the FDI policy is also revised frequently. Any changes to the policy are made after extensive consultations with stakeholders, including apex industry chambers, associations, representatives of industries/groups, and other organizations.
The National Monetization Pipeline (NMP) was launched in 2021 to provide a comprehensive view to investors and developers of the available investment avenues in Infrastructure. Over a four-year period, the total indicative value of NMP for the Central Government's core assets has been assessed at Rs. 6 lakh crore (US$ 75.18 billion).
The Union Cabinet set up Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) in Ministries/Departments of the Government of India to expedite investments in conjunction with state governments, hence expanding India's pipeline of investable projects and attracting more FDI and domestic investments.
The Ministry of Labour and Employment has taken several steps to streamline labour laws to make conducting business easier. By condensing, combining, and rationalising the pertinent provisions of 29 Central Labour Laws, the Government has notified four labour codes: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Code on Occupational Safety, Health, and Working Conditions, 2020.
In order to incentivise new domestic companies to set up their manufacturing units in India, the government has extended the concessional tax rate of 15% to March 31, 2024.
The government introduced the India Industrial Land Bank (IILB), which is a GIS-based portal - a one-stop repository of all industrial infrastructure-related information - connectivity, infrastructure, natural resources, terrain, plot-level information on vacant plots, line of activity, and contact details.
In February 2022, The Ministry of Heavy Industries notified a Phased Manufacturing Programme (PMP) to promote domestic manufacturing of electric vehicles, their assemblies/sub-assemblies, and parts/sub-parts/inputs of the sub-assemblies.
In September 2021, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr. Piyush Goyal, launched the National Single Window System (NSWS). The single-window portal would become a one-stop shop for investors for approvals and clearances, which would bring transparency, accountability, and responsiveness to the ecosystem.

Road Ahead

India is presently known as one of the most important players in the global economic landscape. The country is growing rapidly and is expected to become a US$ 5 trillion economy by 2025.

The Reserve Bank of India (RBI), in order to boost India's digital economy, is planning to launch the Central Bank Digital Currency (CBDC) as India's official digital rupee in FY23. The digital rupee will play a crucial role in improving the speed of transactions and reducing the cost of cash.

Increased government investment is expected to attract private investments, both domestic and foreign. The government's key production-linked incentive (PLI) schemes in multiple sectors will provide significant support to the manufacturing sector. The PLI schemes in 14 different sectors can lead to additional production of Rs. 30 lakh crore (US$ 401 billion) over the next five years, as well as create employment for 60 lakh people.

Gradual opening up of the economy by relaxing FDI norms, record vaccinations to combat the pandemic, increase in consumer demand and income, improving the financial infrastructure of the country, and continued policy support towards industries by the government in the form of the Atmanirbhar Bharat Abhiyan and various PLI schemes have led to an upturn in the performance of the investment sector in India, which is set to scale new heights in the coming years.