FDI Reforms by the Narendra Modi Government for India's Growth

Foreign Direct Investment measures the world's (and investors') interest in a country. When the world wants to do business with a country, it becomes more involved in its affairs, effectively becoming a stakeholder in its security and sustainability.

If one studies the cumulative amount of FDI received from 2000 onwards, which is around when significant amounts of FDI began flowing into India, to 2021, one striking fact emerges — India has received more than 50% (in fact, around 60% to be exact) of the total amount of FDI received between 2000 and 2021 in the last eight years.

Over a 20-year period, more than half of FDI has arrived since 2014. This is interesting in and of itself, but there is more. We now have data showing not only which sectors and states are receiving investment but also which districts are receiving it. We can see which communities in the country are receiving FDI and how much is being invested.

Some investment companies are going places they haven't been before. Districts with names like Bhagalpur, Jabalpur, Seoni, Chitrakoot, Ujjain, East Khasi Hills and Burdwan have received an investment boost of sorts in the latest fiscal year for India (2017/18). While these investments are small in comparison to the overall figure for FDI (now at a historic high of $83.57 billion), it's exciting to see some of this money going to districts that may not be as relevant to economic discussions or concerns as say New Delhi or Mumbai City might be.

It is important to note that this type of analysis is still in its early stages, not least because the years 2020 and 2021 were anomalous in every way due to the COVID-19 pandemic.

Therefore, as the numbers of districts rise, we will likely see a more precise pattern of investors moving in towards 'aspirational districts.' This is encouraging, though I personally would like to see some data that speaks to how 'aspirational districts' have changed across the country with regard to investors looking to diversify investment opportunities within the country.

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