India is one of the top 10 destinations for foreign direct investments (FDI) and has been the premier destination for greenfield investments for the past two years. Much of India’s success in attracting FDI can be attributed to strategic efforts of Invest India, the official Investment Promotion and Facilitation Agency (IPA) of India.
The objective of the consultancy report (Report), by Columbia University’s SIPA graduate student Capstone team, to Invest India, is to provide recommendations on bringing quality FDI into India, with the objective of increasing sustainable FDI in India, defined as those inflows that align foreign investors’ commercial and financial interests with a country’s economic, social, and environmental development goals and requirements, particularly those emphasized in the country’s commitments towards achieving the United Nations Sustainable Development Goals (UN SDGs).
The team analyzed three sectors: automobiles (including auto-components), biopharmaceuticals, and textiles, in assessing how FDI in these sectors can help India’s efforts to achieve UN SDGs, acknowledging cross-cutting themes, such as labor, land, environment and infrastructure development. The Report provides a SWOT analysis of the sectors, elaborates on factors affecting investments and recommends policy measures that could increase FDI, particularly sustainable FDI. Additionally, the Report recommends legal reforms to attract FDI, with a particular focus on promoting corporate responsibility, transparency, and effective intellectual property rights regimes. Lastly, it provides recommendations on how Invest India can enhance its branding as an IPA, assessing its digital outreach, policy advocacy mandate, and efforts to promote India as a destination for sustainable FDI.