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Optimism & Enthusiasm Galore About India as a Foreign Investment Destination

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Founded in 2015, FDI India provides consultancy to Indian businesses to accelerate business growth by obtaining soft loans from foreign investors through the most credible route. The firm dedicatedly serves over 27 sectors including manufacturing, pharmaceuticals, solar &hydro plants, construction and hospitality among others.

Q 1. What are the key services/sectors in India which will see growth and development in the coming year?
A: Government’s initiatives like Make in India targeted numerous sectors to accelerate local manufacturing and position India as a global hub for innovation. This also opened sectors for attracting foreign investments and there has been a significant rise in FDIs since then, with FDI inflow between April 2014-March 2020, being almost 52.5% of that received in the country since April 2000. Some of the sectors that are likely to attract more investments in the coming years are-
● Pharmaceuticals and Healthcare – currently, as the largest vaccine producer in the world, India currently has a share of 20% generic medicines supplies by volume. Given the low cost of production and R&D, as well as medical tourism, India is certainly a hotspot for investment in this segment.

● Textiles- The sector has one of the highest shares in foreign cash inflows and a lot of global fashion and apparel brands are now setting up shops to take advantage of the abundance of raw materials available in India.

● Hospitality- Though the sector has taken a hit due to COVID19, the long-term outlook is bright. As businesses and travel return to normal gradually, the sector will need new innovations to manage the security and health risks – calling for more investments and expansion of the sector.

● Construction- Construction is the second in line to receive massive FDI funds in India, given the industry’s contribution to the overall development and GDP.

The healthy growth in the overseas investments is proving that there is a lot of optimism and enthusiasm about India as a foreign investment destination


Q2. How well do you forecast future demand for the services that are delivered or supported by your assets?
A: Ease of doing business is very critical for FDI, India has been ranked 63rd position in world bank's ease of doing business 2020. Foreign companies check the credibility of businesses through the World Bank's ranking and India's ranking has been much-improved so far. India has attracted more than $74 bn investments across sectors during the fiscal year 2019-20. The healthy growth in the overseas investments is proving that there is a lot of optimism and enthusiasm about India as a foreign investment destination. In order to channelize the right kind of investors, FDI India through its largest network of global investors from across 15 countries, has been providing consultancy to hundreds of Indian businesses with a wide range of services including Financial Planning & assistance, connecting them to the right foreign investors and project planning.

Q3. What are the methodologies for analyzing the development & testing creditworthiness for investing in Innovative Startups?
A: At FDI India, we aim to ensure the highest level of credibility to businesses as well as the investors. In order to ensure credibility, Businesses undergo digital as well as Manual screening. In digital screening, we scheme out businesses depending on their size of the company, size of the project etc. for primary level of scanning, then we undertake manual screening and meet each prospect personally in order to verify their creditworthiness. Both the businesses as well as the investors undergo strict scrutiny in order to ensure their financial capacities.

Q4. How can Foreign investors help startups or companies to sustain financial stability during the pandemic? How has India’s startup funding ecosystem been impacted in 2020?
A: FDI India is ensuring financial stability to businesses by connecting investors at the right time with the right kind of fund. The pandemic has aroused the ever important need for survival, making financial sustainability a huge concern. Through our platform, we are helping growing businesses and mid-sized businesses to obtain soft loans at a nominal rate of interest in order to revive from the stagnant growth during the pandemic and pace up with a new ray of hope i.e. in the form of financial security.

The pandemic has undoubtedly impacted the business funding scenario in India, but it also brought new opportunities for growing as well as mis-sized businesses who require funds for a minimum ticket size of 50 Cr. in order to pace up in the ongoing environment.

Q5. What are the three sectors that can see growth through FDI investment? Please share your insight?
A: India’s attractive position as an investment destination globally has favored a 300 USD billion value of GDP potential. We have seen heightened influx of FDI investment in sectors such as Auto and components, Textile and Garments, Pharma and Healthcare.