New Delhi, Apr 6 (KNN) India is setting an ambitious target to attract at least USD 100 billion in foreign direct investment (FDI) annually over the next five years as it courts investors looking to diversify away from China, a top government official said.

"Our target is that we will average at least USD 100 billion over the next five years. The trend is very positive and upward," said Rajesh Kumar Singh, secretary in the Department for Promotion of Industry and Internal Trade.

The USD 100 billion goal compares to an annual FDI average of over USD 70 billion in the five years through March 2023. It would mark a reversal after FDI declined last year.

Singh said FDI for the current fiscal year ending March 2024 will be "closer to" the USD 100 billion target.

The world's fastest-growing major economy is appealing to businesses pursuing a "China plus one" strategy by spreading operations beyond China to hedge geopolitical risks.

Companies like Apple and Samsung have already boosted manufacturing in India, taking advantage of incentives offered by Prime Minister Narendra Modi's government.

Despite the manufacturing growth, FDI hasn't kept pace, which Singh attributed to higher inflation, interest rates in developed nations and geopolitical conflicts.

"India has unmatched market growth opportunity in sectors like electric vehicles, electronic goods or general consumer goods, where penetration is far lower than the global average," Singh said.

He vowed the government will take more steps to ease FDI rules to attract investment.

Boosting manufacturing has been a key priority for Modi, who is seeking re-election in polls starting April 19. New industrial corridors are planned in the new government's first 100 days, Singh said.

(KNN Bureau)