Sectors across the board are benefiting from influx of foreign direct investment, including traditional investor choices as well as new-age industries, according to Deepak Bagla, managing director and CEO of Invest India.
India is at the cusp of an inflection point from the perspective of FDI, Bagla told BQ Prime's Niraj Shah, on the sidelines of the World Economic Forum in Davos, on Friday.
"What would typically happen is that, as of now, you would look at the larger sector bringing you the larger deal cheques. You could have oil, energy, transition, infrastructure, healthcare, which are all there. You have a large number of new sectors which are emerging, which would be sectors of the future, for example, data storage," he said.
Approximately, 40% of the total investment in data storage has come in the past 24 months in the lockdown, said Bagla.
"You have these large number of new sectors associated with digitisation, with new economy even when the traditional sectors of health and finance have new elements coming out as sub-sects of the larger sectors. The innovation of India is now creating those big opportunities," he said.
Of the $970 billion India has received as FDI since independence, $430 billion has come in the past eight years, Bagla said. This has come from 162 countries to 61 sectors in India, he said.
"FDI in the past eight years has come into 31 states and union territories of India," the Invest India CEO said. "The moment you have a larger number of states... the more the states, the larger is the bouquet. The bigger is the bouquet, the bigger is the ability to absorb capital."
In the past 72-84 months, absorption of capital has improved with the push to digitisation, Bagla said.
Watch the full conversation here:
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