India eyes Centre-state sync for FDI in key sectors

The Centre is working on a plan to create an industry-friendly ecosystem for foreign direct investment (FDI), by identifying key sectors and reaching out to global companies, two government officials aware of the matter said.

- Dhirendra Kumar

The plan, which will also draw on existing production-linked incentive (PLI) schemes and infrastructure development programs, involves close coordination between the Centre and states, the officials said on condition of anonymity. The idea is to align states’ efforts with national priorities, address local policy bottlenecks, and strengthen the country’s overall manufacturing and supply chain ecosystem, they said.

As a first step, the ministry of commerce and industry is coordinating with Invest India, the country’s top investment promotion and facilitation agency, to identify key value chains and sectors that require targeted intervention.

“We are mapping the sectors and value chains where India can play a larger role and then approaching global companies operating in those areas to bring in investment,” the first official cited above said.