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Make in India and Recent Trend of FDI Inflow

Government of India took initiatives to attract foreign direct investment in manufacturing sector through ‘Make in India’ campaign. Eyeing to the necessary growth of manufacturing industry the central and states governments are changing their trade and investment policies. But the recent trend of FDI inflows shows that the foreign investors still prefer Indian service sectors. The objective of this study is to analyse recent trend of FDI inflows to India and to find out the reason behind the trend. The study finds that the greatest part of Indian inward FDI is Market Seeking FDI in nature. Since there is a ready market for defence material and sophisticated technology based electronic devices a smart FDI inflows to these sectors may be experienced in near future.