Foreign Trade Missions to Power India's FDI Search

In-principle approvals by trade missions aim to revive India's falling FDI inflows

- Dhirendra Kumar

India is looking to strategically leverage its trade missions to position itself as a more attractive destination for foreign investment, according to two people familiar with the matter.

Indian missions abroad would be given the authority to grant in-principle approvals to foreign direct investment (FDI) proposals from different countries to help cut through bureaucratic hurdles, the persons cited above said on the condition of anonymity.

The Centre's thinking, discussed in a recent high-level meeting involving key government ministries, comes in the backdrop of a global realignment of supply chains and keen interest from international businesses seeking manufacturing alternatives to China, which is facing unprecedented tariffs of up to 245% for exports to the US.

The initiative would also look to break the sliding trajectory of FDI inflows over the past three years.

"Proposals will be submitted to the trade missions, and it will be their responsibility to coordinate with the concerned stakeholders back home and facilitate the approval," said the first person cited above. "It will allow investors to plan their India strategy more efficiently, without getting stuck in an endless loop of clearances."