'Govt's manufacturing push not yielding results; FDI continues to chase less-complicated services sector'
The Hindu
Trend likely because doing business in the services sector is less complicated than doing business in the manufacturing sector in India, says Ind-Ra; ‘services FDI increased to $153.01 billion between April 2014 and March 2022 from $80.51 billion between April 2000 and March 2014’
Despite the central government's high-octane push to boost manufacturing through the 'Make in India' initiative, foreign investors continue to chase bets in the services sector, a domestic rating agency said on Wednesday.
India Ratings and Research also said a bulk of the foreign direct investment (FDI) in manufacturing was not greenfield or fresh investments.
“Despite the government's effort to attract more investments in the manufacturing sector through 'Make in India' campaign, the FDI inflow is still tilted in favour of the services sector,” the rating agency said.
“This could be because doing business in the services sector is less complicated than doing business in the manufacturing sector in India,” the agency, an arm of Fitch Ratings, said.
It said services sector FDI increased to $153.01 billion in the services sector during April 2014 to March 2022 from $80.51 billion during April 2000 to March 2014, while the increase in manufacturing was less fast at $94.32 billion as against $77.11 billion.
The agency pointed out that in 2014, India had unveiled a flagship programme called 'Make in India' to facilitate investments across sectors, but with a special focus to build a world-class manufacturing sector and followed it up with the PLI scheme across 14 manufacturing sectors.
The services sector accounted for the highest share in FDI between 2000-2014 as well, the agency said, adding that within services, trading, telecommunications, banking/insurance, IT/business outsourcing and hotels/tourism are the favourites.
U.S. antitrust agencies have cleared Nvidia’s investment in Intel, according to a notice posted by the U.S. Federal Trade Commission.
Google advises U.S. visa holders to avoid international travel amid embassy delays that may extend their stay abroad.
Alphabet’s cloud computing unit and cybersecurity company Palo Alto Networks on Friday announced an expanded partnership that one source told Reuters was by far Google Cloud’s largest security services deal.
Ather Energy launches auto insurance services to enhance the EV ownership experience and streamline offerings for customers.
China requests WTO consultations with India over ICT tariffs and solar subsidies, citing violations of trade obligations and unfair advantages.
The rupee rises 54 paise to 89.66 against the dollar, supported by corporate inflows and easing crude prices.
India's forex reserves rose by $1.68 billion to $688.94 billion for the week ending December 12, 2025.
India and Oman aim to implement their trade pact within three months, enhancing zero-duty access for key exports.
Stock markets rebound as Sensex rises 447 points, driven by global trends and fresh foreign fund inflows.
Reliance Consumer Products acquires a majority stake in Udhaiyams Agro Foods, enhancing its presence in the staples market.
Coca-Cola India reports a 46.3% profit increase to ₹615 crore in FY25, with revenue rising to ₹5,042.56 crore.
India's trade deficit with China is projected to hit $106 billion by 2025, despite a recent surge in exports.
Adani Group plans ₹1 lakh crore investment in airports, expanding its portfolio with Navi Mumbai International Airport and aggressive future bids.