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Six Priority Sectors Picked to Revive FDI Inflows

28 July 20251 min read
ECONOMYSix PrioritySectors Picked toRevive FDI Inflows28 July 2025safalsetu.com

Why in the news

With net FDI slowing amid global uncertainty and investor exits, Invest India and the government plan targeted outreach.

Key facts

  • Electronics (ESDM): PLI-driven; Foxconn and vendors invested.
  • Footwear (non-leather): labour-intensive exporter.
  • Chemicals: China+1 option, specialty and agrochemicals.
  • Medical devices: PLI support to cut imports.
  • Toys: MSME and design hub support.
  • EVs: VinFast entered; import concession scheme.

Strategy

  • Boost gross inflows through value chain mapping, ease of doing business and inter-ministerial coordination.
  • Localise parts such as motors, compressors and copper tubes via PLI and tariff incentives.

Exam angle

  • Agency: Invest India; six sectors in all.

Test yourself

1. Along with the government, which agency drew up the sector-specific strategy to attract fresh FDI?

The strategy was prepared by the government with Invest India.

2. How many sectors were shortlisted for targeted FDI outreach?

The government shortlisted six sectors.

3. Which company, named in the FDI sector plan, has entered India's electric vehicle segment?

VinFast is named under electric vehicles; Foxconn is named under electronics.