New Delhi

India is setting its sights on attracting a whopping $100 billion in annual foreign direct investment (FDI) in the coming years, according to Information Technology Minister Ashwini Vaishnaw.

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This is based on a Reuters report.

In an interview at the World Economic Forum in Davos, Vaishnaw outlined a comprehensive growth strategy, foreseeing a consistent growth rate of 6-8 per cent over the next decade.

The strategy revolves around four major engines: investment in physical and digital infrastructure, uplifting the bottom pyramid of the population, boosting manufacturing, and simplifying business processes to enhance the ease of doing business.

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Vaishnaw highlighted the key components of India's growth strategy, emphasising the significance of investment in infrastructure, both physical and digital.

"We see 6-8 per cent consistent growth rate over the next full decade, and this is based on a very clearly thought-out strategy," he told Reuters.

Foreign direct investment is a pivotal aspect of this plan, and Vaishnaw expressed optimism, asserting that India is now perceived as the "most important investment destination" by global investors.

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Despite previous critiques of Modi's protectionist policies, foreign investors, including major players like Apple, Samsung, Kia, and Airbus, have made substantial investments in India.

India has been a magnet for foreign investment since Prime Minister Narendra Modi assumed office in 2014. Despite occasional criticism of protectionist policies, the country recorded FDI inflows of $33 billion in the first half of the current financial year and $71 billion in the 2022-23 financial year.

The ambitious target of $100 billion in annual FDI is aimed at sustaining India's economic growth, which is projected to be the highest among major global economies at 7.3 per cent for the current financial year.

This move aligns with Prime Minister Modi's efforts to attract investors ahead of the upcoming elections, addressing crucial issues such as unemployment among the youth.

Vaishnaw drew a parallel with China's success in consistently attracting substantial FDI over more than a decade.

He emphasised that investors now view India as the "most important investment destination".

While India has made significant strides in various sectors, Vaishnaw underscored his role in overseeing India's push to become a powerhouse in electronics manufacturing, aligning with Modi's broader business agenda.

He also highlighted ongoing efforts to enhance collaboration with Apple, aiming to boost the company's manufacturing and retail presence in India, where it currently contributes to approximately 12-14 per cent of global iPhone shipments.

(With inputs from Reuters)