India is pushing for more foreign investments with the launch of its 'Make in India' campaign. The campaign, launched at the end of September by president Narendra Modi, is aimed at securing more FDI by making investing in the country easier and more transparent.

Among the new, pro-FDI steps by Mr Modi's administration are de-licensing and deregulation measures, such as enabling some processes to be completed online and extending the validity of industrial licenses from two to three years. Infrastructure is also being developed, including the $90bn Delhi-Mumbai Industrial Corridor, a network of manufacturing cities connected by a 1483-kilometre railway freight corridor. The government is also easing controls of FDI in sectors such as defence, construction and railways.


“India is laying out the red carpet to encourage foreign investors. There has already been a visible impact with a shift in domestic as well as foreign investor sentiment,” Manoj Gidwani, of SKP, a member firm of global consultancy Nexia International, commented shortly after the campaign was launched.

By luring investments, the government hopes to transform India into a global manufacturing hub, raising its manufacturing sector’s share of the country's GDP to 25% by 2022. Currently, the manufacturing sector accounts for 15% of India’s GDP, relatively low compared to China’s 30%. It is targeting the manufacturing industry, in particular, as it wants to create labour-intensive manufacturing jobs that are much needed by the country which is, according to forecasts, well on its way to becoming the most populous country in the world by 2028.