India's IT minister expressed the country's goal to attain an annual FDI of $100 billion in the near future

India's IT minister stated on Wednesday that the country aims to achieve an annual foreign direct investment (FDI) of $100 billion "in the coming years." This ambitious goal is part of Prime Minister Narendra Modi's efforts to attract investors in preparation for his reelection bid.

In an interview at the World Economic Forum in Davos, Information Technology Minister Ashwini Vaishnaw expressed confidence in India's economic strategy, projecting a consistent growth rate of 6–8% over the next decade. According to Vaishnaw, this growth is grounded in a well-thought-out strategy with four major engines.

He identified the four key drivers as investing in both physical and digital infrastructure, uplifting the socioeconomically disadvantaged segments of the population, enhancing manufacturing capabilities, and streamlining business processes to improve the ease of doing business. Since Modi assumed office in 2014, significant foreign investments have been made in India, with major companies like Apple, Samsung, Kia, and Airbus expanding their operations in the country.

In 2023, India secured $33 billion in foreign direct investment (FDI)

During the initial six months of the ongoing financial year commencing in April 2023, India garnered foreign direct investment (FDI) totaling $33 billion. In the preceding financial year of 2022–23, the country recorded an FDI of $71 billion.

Despite projecting a robust 7.3% economic growth for the current financial year, which surpasses rates seen in other major global economies, India grapples with a significant number of unemployed youth—a critical concern in the upcoming elections.

Vaishnaw drew a parallel by comparing the target of reaching $100 billion in FDI with the consistent inflows that China attracted annually for more than a decade. He further noted that investors currently perceive India as the "most crucial investment destination."

India makes up approximately 12-14% of global iPhone shipments

Vaishnaw has been leading India's efforts to establish itself as a major player in electronics manufacturing, a crucial aspect of Modi's economic strategy.

Also read: World Economic Forum summit: Gita Gopinath discussed AI’s diverse challenges and impact on labor markets

According to Vaishnaw, there is ongoing collaboration with Apple to enhance the company's manufacturing capabilities and expand its retail footprint in India. Currently, it is estimated that India contributes to around 12–14% of global iPhone shipments.