The government is considering setting up a foreign investment regulatory mechanism to review and monitor foreign investment (FDI). Giving this information, sources said that at present the discussion on this has just started. A source said, it has been seen that all countries monitor foreign direct investment (FDI) coming into their country. People suggest that India should also have a monitoring mechanism. This is a kind of monitoring of the money coming into the country in the form of FDI. This can help ensure that the FDI coming into the country is beneficial for the economy and is coming from legitimate sources. India is a major destination for FDI due to its large population, stable policies, demographic dividend, good investment returns and skilled workforce. 

Several steps were taken to attract investments

The government has taken several steps to attract foreign investment. These include promoting ease of doing business by simplifying procedures and significantly reducing the compliance burden for the industry. The government has eased FDI norms in several sectors such as space, e-commerce, pharma, civil aviation, contract manufacturing, digital media, coal mining and defense. Apart from this, the Production Linked Incentive (PLI) scheme has been launched for 14 sectors like electronics and large electric products. The official said that efforts to promote ease of doing business, zero tolerance towards corruption and focus on emerging sectors like electronics have helped promote 'Make in India' and promote domestic and foreign investment in the country. 

FDI inflows increased by 119 percent 

In the last 10 financial years, FDI inflows have increased by 119 per cent, reaching USD 667 billion compared to USD 304 billion in the previous 10 years (2005-14). More than 90 per cent of the total FDI has been received through the automatic route. According to government data, foreign direct investment in India grew 47.8 per cent to USD 16.17 billion in April-June this fiscal year due to healthy inflows in the services, computer, telecom and pharma sectors. The government is also developing industrial townships to boost domestic manufacturing and attract foreign investors by providing world-class infrastructure. India receives maximum investments from countries such as Mauritius, Singapore, US, Netherlands, UAE, Cayman Islands, Cyprus, Japan, UK and Germany.