Government to Boost FDI and FII inflows, Says Piyush Goyal
As part of the government's overarching goal of achieving Viksit Bharat by 2047, Commerce and Industry Minister Piyush Goyal said on Tuesday that it is actively collaborating with stakeholders to establish a more favorable investment climate in India. He told the FICCI annual general body meeting in New Delhi that he is speaking with members of the investment community to find strategies to improve the speed, simplicity, and efficiency of foreign direct investment and foreign institutional investment.
The minister emphasized that an increase in investment would lead to job creation, facilitate the introduction of new technologies, and encourage research, development, and innovation.
He elaborated that greater inflows would enhance defence manufacturing and contribute to a more stable domestic currency, which would subsequently aid in reducing inflation.
Goyal addressed the necessity for policy certainty, a stable currency, and investor confidence throughout the investment ecosystem. He called upon Indian industry to diversify supply chains and lessen reliance on a single geography, pointing out that the government is focusing on establishing a robust domestic manufacturing base. He mentioned that it is crucial to assess supply chains for vulnerabilities, especially as trade is increasingly being weaponized and recent global disruptions have highlighted these risks.
Highlighting the significance of workforce development, Goyal underscored the need to cultivate skills among the younger generation, particularly those born after 2000. He noted that India's challenge lies more in underemployment than in unemployment and asserted that the creation of a large, skilled, and talented workforce is vital to bridging this gap.
During the Indo-US Business Summit held in New Delhi, Goyal expressed that favorable advancements could be anticipated regarding the proposed India–US trade agreement, contingent upon both parties achieving a settlement that is just, equitable, and balanced.
He emphasized that negotiations should protect India's interests and sensitivities, especially in relation to farmers, fishermen, and small industries, and indicated that positive developments would emerge once these interests align with the framework of the agreement.
Goyal rejected any notions of a slowdown in India–US relations, characterizing the partnership as strategic and resilient. He pointed out that India and the US had recently formalized a 10-year defense agreement with the US Department of Defense and noted that a relationship as extensive as this encompasses various components that may not always evolve uniformly, comparing occasional disagreements to those found within a family.
He conveyed that the Indo-American partnership is best understood as one founded on trust and mutual prosperity, which benefits not only the two nations but also the global community. He further mentioned that India has recently finalized a significant LPG agreement, pledging to import 2.2 million tonnes annually from the US, highlighting that collaboration between the two countries continues to be both active and substantial.