'FDI will flow again; China-plus-one gain will take time'

In the September quarter, India's FDI equity inflows declined 7.7% annually to $9.5 billion, according to official data

- Rhik Kundu

India’s foreign investment inflows will remain healthy over the long term despite a recent dip, and the country stands to gain from global enterprises’ China-plus-one strategy though it won’t happen overnight, a top official said.

Rajesh Kumar Singh, secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), said foreign direct investment (FDI) flows will not be impacted by the ongoing geopolitical conflicts and economic setbacks in advanced economies, simply because India’s growth trajectory remains strong.

On China-plus-one, Singh pointed out that India’s northern neighbour has built up significant manufacturing capacities, and as much as 30% of the global supply chain is concentrated there. "This happened over decades, from the 1990s onwards. It is not something that will disappear overnight or shift overnight to India. But we can set the ball rolling," he added. China-plus-one refers to global companies’ strategy to expand manufacturing and supply chains at a location in addition to China, where much of it is concentrated now.