Lok Sabha Question No. 2588 (UNSTARRED), answered on 2025-03-17
Subject: Investment Destination
Ministry: FINANCE
Asked by: Shri Prabhakar Reddy Vemireddy

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2588 TO BE ANSWERED ON MONDAY, MARCH 17, 2025

## Investment Destination

2588.  Shri Prabhakar Reddy Vemireddy: Will the Minister of FINANCE be pleased to state:
2. (a)  whether it is true that the country has become the 5th most attractive investment destination in the world as per PwC;
3. (b)  if so, the details thereof;
4. (c)  the  manner  in  which  the  Government  is  planning  to  consolidate  this  position looking at earlier slippages from 4th in 2020 to 5th in 2022 and 9th in 2023;
5. (d)  the details of policy interventions and administrative measures to take this rank further; and
6. (e)  the extent to which the additional capital expenditure and domestic demand is helpful in this regard?

## ANSWER MINISTER OF STATE (FINANCE)

## (SHRI PANKAJ CHAUDHARY)

- (a)  to  (d) Yes Sir, as per PwC 27th Annual Global CEO Survey, India has become the  5th  most  attractive  investment  destination  in  the  world.  However,  private institutions, rating agencies and other global bodies publish their own in-house research  on  Indian  Economy  from  time  to  time,  which  are  based  on  specific assumptions, often differing from one another and do not represent the view of the Government of India. Government has taken various steps to boost domestic and foreign investment in India. Make in India, Start-up India, PM GatiShakti, National  Industrial  Corridor  Programme,  Production  Linked  Incentive  (PLI) Scheme, promoting Ease of Doing Business (EoDB) and reducing compliance

burden, National Single Window System  (NSWS), India Industrial Land Bank, Project  Monitoring  Group  (PMG),  liberalization  of  FDI  policy  are  some  of  the major initiatives undertaken by Government to boost industrial activity and thus investments into the country.  Government has put in place an investor-friendly policy, wherein most sectors except certain strategically important sectors, are open for 100% FDI under the automatic route. More than 90% of the FDI inflow is received under the automatic route. India continues to open up its economy to global investors by raising FDI limits, removing regulatory barriers, developing infrastructure  and  improving  business  environment.  For  instance,  the  Union Budget  2025  announced  for  the  further  increase  of  FDI  sectoral  cap  for  the insurance sector from 74% to 100%. The Government always strives to attract more FDI by removing regulatory barriers, streamlining processes, developing infrastructure,  bettering  logistics  and  improving  the  business  environment  by enhancing the Ease of Doing Business (EoDB).

- (e) Capital expenditure and strong domestic demand  significantly enhance investment attractiveness of a country. Among others, infrastructure spending reduces business costs and improves productivity, which helps in attracting more investments. In this regard as per Budget 2025 the total capital expenditure is estimated at INR 10.18 lakh crore in RE 2024-25 as against INR 9.49 lakh crore in actuals of FY 2023-24. Further multiple initiatives have been taken to boost domestic  demand  including  taxation  measures,  thereby  boosting  domestic consumption, savings and investments.

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