Industry seeks higher FDI cap for R&D as govt highlights broader global investment base

An investor roundtable held by the Commerce Ministry at Vanijya Bhawan on June 5 witnessed deliberations with stakeholders from the industry, which included suggestions on critical areas such as land and labour reforms, skill development, Centre-State policy coordination, raising FDI limits in Research & Development across sectors, and promoting investments in manufacturing and green energy.Over 90 representatives, including stakeholders from prominent companies, industrial associations, and 50 industrial parks in Rajasthan, Maharashtra, Delhi, Gujarat, Uttar Pradesh, Karnataka, and Tamil Nadu were a part of the deliberations on future expansion and strategies to promote reinvestment of earnings within India.Highlighting that Foreign Direct Investment (FDI) up to 100% is allowed through the automatic route in most sectors, Commerce and Industry Minister Piyush Goyal said that the number of countries of origin for FDI inflows into India has increased from 89 in 2013-14 to 112 countries now.Inviting views and suggestions from investors to enhance reinvestment within the country, improve industrial park infrastructure, and explore new expansion opportunities, DPIIT Secretary Amardeep Singh Bhatia highlighted that FDI has grown 14% year-on-year from $71.28 billion in FY 2023-24 to $81.04 billion in FY 2024-25.He urged investors to consider scaling up their operations and co-investing in startups.

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