Piyush Goyal Reviews Invest India to Bolster Manufacturing Growth
| 2025-05-14
Commerce and Industry Minister Piyush Goyal reviewed Invest India to enhance investor facilitation, boost MSMEs and strengthen the country’s manufacturing sector under ‘Make in India’
Indian Minister Piyush Goyal reviews Invest India to enhance investor facilitation, boost MSMEs and strengthen the country’s manufacturing sector under ‘Make in India’.
Indian Commerce and Industry Minister Piyush Goyal has called for improved efficiency at Invest India, the country's national investment promotion agency, in a bid to attract higher foreign and domestic investments and accelerate the growth of the manufacturing sector.
At a high-level meeting held at Bharat Mandapam in New Delhi on Tuesday, Commerce and Industry Minister Piyush Goyal conducted a comprehensive review of Invest India, focusing on measures to enhance the agency's performance and streamline its operations.
At a high-level meeting held at Bharat Mandapam in New Delhi on Tuesday, Commerce and Industry Minister Piyush Goyal conducted a comprehensive review of Invest India, focusing on measures to enhance the agency's performance and streamline its operations.
The review forms part of a broader government effort to reinforce India’s manufacturing sector and strengthen support for micro, small and medium-sized enterprises (MSMEs).
Mr Goyal stressed the need to increase Invest India's effectiveness in facilitating investment, particularly through faster clearances and investor handholding."We must empower Invest India to become more responsive and proactive in supporting investors and MSMEs," he said during the review, according to ministry sources.
Invest India's Role
Invest India operates as the primary point of contact for both international and domestic investors entering the Indian market. Set up by the Government of India, the agency provides end-to-end services across the investment lifecycle, including advisory, facilitation, aftercare, and expansion support. A key focus is enabling manufacturing investments aligned with the country's 'Make in India' initiative.
The agency plays a critical role in expediting necessary approvals, such as land allocation and environmental clearances, which are often cited by investors as challenges in setting up manufacturing operations.
Focus on Manufacturing and MSMEs
India’s manufacturing sector currently contributes around 17 per cent to the country’s gross domestic product and employs more than 27 million people. The government has set an ambitious target to raise this share to 25 per cent by 2025. The push is being supported by policies such as the Production-Linked Incentive (PLI) schemes and the ongoing Make in India programme.
The minister's emphasis on MSMEs during the review reflects the government’s strategic focus on these labour-intensive enterprises. MSMEs are considered critical to employment generation and grassroots economic development in India.
Make in India and FDI Growth
Launched in 2014, the Make in India initiative aims to position India as a global manufacturing hub by fostering innovation, developing high-quality infrastructure, improving skills, and simplifying regulations. The initiative has contributed significantly to attracting investment into the manufacturing sector.
Between 2014 and 2023, India witnessed a 55 per cent increase in foreign direct investment (FDI) equity inflows into manufacturing, rising from $96 billion during 2005–2014 to $148.97 billion in the subsequent nine years, according to data from the Ministry of Commerce and Industry.
This surge in investment is attributed to various policy measures that have liberalised FDI norms. Under the current policy, most sectors permit up to 100 per cent FDI, except for a few restricted areas. For instance, the defence sector allows up to 74 per cent FDI under the automatic route and 100 per cent under the government route.
Sectoral Differences in FDI Rules
FDI regulations differ across sectors. In broadcasting, FDI limits vary between print and digital media, and while the automatic route allows investments without prior government approval, the government route requires official clearance before any investment is made.
The minister's review underscores the government’s continuing focus on policy clarity and institutional efficiency as India seeks to maintain its status as a competitive investment destination.
The review of Invest India comes at a time when global companies are reassessing supply chains and looking to diversify manufacturing bases outside China. India, with its large domestic market, improving infrastructure, and reform-driven governance, is positioning itself as an alternative destination. Strengthening investment facilitation is seen as crucial to converting interest into actual commitments.
As the world’s fifth-largest economy continues to prioritise economic self-reliance and job creation, initiatives like Make in India and the ongoing refinement of investment policies remain central to the government’s industrial strategy.
Mr Goyal stressed the need to increase Invest India's effectiveness in facilitating investment, particularly through faster clearances and investor handholding."We must empower Invest India to become more responsive and proactive in supporting investors and MSMEs," he said during the review, according to ministry sources.
Invest India's Role
Invest India operates as the primary point of contact for both international and domestic investors entering the Indian market. Set up by the Government of India, the agency provides end-to-end services across the investment lifecycle, including advisory, facilitation, aftercare, and expansion support. A key focus is enabling manufacturing investments aligned with the country's 'Make in India' initiative.
The agency plays a critical role in expediting necessary approvals, such as land allocation and environmental clearances, which are often cited by investors as challenges in setting up manufacturing operations.
Focus on Manufacturing and MSMEs
India’s manufacturing sector currently contributes around 17 per cent to the country’s gross domestic product and employs more than 27 million people. The government has set an ambitious target to raise this share to 25 per cent by 2025. The push is being supported by policies such as the Production-Linked Incentive (PLI) schemes and the ongoing Make in India programme.
The minister's emphasis on MSMEs during the review reflects the government’s strategic focus on these labour-intensive enterprises. MSMEs are considered critical to employment generation and grassroots economic development in India.
Make in India and FDI Growth
Launched in 2014, the Make in India initiative aims to position India as a global manufacturing hub by fostering innovation, developing high-quality infrastructure, improving skills, and simplifying regulations. The initiative has contributed significantly to attracting investment into the manufacturing sector.
Between 2014 and 2023, India witnessed a 55 per cent increase in foreign direct investment (FDI) equity inflows into manufacturing, rising from $96 billion during 2005–2014 to $148.97 billion in the subsequent nine years, according to data from the Ministry of Commerce and Industry.
This surge in investment is attributed to various policy measures that have liberalised FDI norms. Under the current policy, most sectors permit up to 100 per cent FDI, except for a few restricted areas. For instance, the defence sector allows up to 74 per cent FDI under the automatic route and 100 per cent under the government route.
Sectoral Differences in FDI Rules
FDI regulations differ across sectors. In broadcasting, FDI limits vary between print and digital media, and while the automatic route allows investments without prior government approval, the government route requires official clearance before any investment is made.
The minister's review underscores the government’s continuing focus on policy clarity and institutional efficiency as India seeks to maintain its status as a competitive investment destination.
The review of Invest India comes at a time when global companies are reassessing supply chains and looking to diversify manufacturing bases outside China. India, with its large domestic market, improving infrastructure, and reform-driven governance, is positioning itself as an alternative destination. Strengthening investment facilitation is seen as crucial to converting interest into actual commitments.
As the world’s fifth-largest economy continues to prioritise economic self-reliance and job creation, initiatives like Make in India and the ongoing refinement of investment policies remain central to the government’s industrial strategy.
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