India set to attract FDI and exploit COVID-19 created opportunities

Even as Asia attracted a significant amount of cross-border investment, accounting for more than half of global Foreign Direct Investment (FDI), FDI equity inflows into India increased by 13%, with the country receiving more than $30 billion in the first half of the financial year ending March 2021. With the Indian government seeking FDI specifically from companies intending to diversify manufacturing operations away from China, the $30 billion swell incorporates a tidy amount in the pharmaceutical sector, reports The Pharma Letter’s India correspondent.

India's pharmaceutical sector has gained renewed global attention due to the crisis brought about by COVID-19, with the FDI inflows firmly establishing India's credentials as a safe and key investment destination in the world. Experts expect FDI flow to easily cross the $50 billion mark in 2021 given the government's focus, especially after COVID-19, to make India a manufacturing hub.

Anti-China sentiment has also provided a bigger opportunity to attract fund flow. To encourage companies exiting China, the government intends to offer a red-carpet treatment, and is already working on simplifying entry process and ensuring ease of doing business in India.