Modi’s ‘Make in India’ a success: Moody’s


MUMBAI: Ratings agency Moody’s has said that net foreign direct investment (FDI) inflows have hit an all-time high in early 2016, highlighting the success of Narendra Modi’s ‘Make in India’ initiative. The ratings agency said that the FDI inflows have more than financed the current account deficit (CAD) for the first time since 2004. A country is known to be facing a CAD when the value of its imports is more than the value of its exports.

“The rise in FDI points to stronger investor interest in India on the back of robust economic growth. Higher inflows also suggest that recent government policies, such as efforts to liberalize foreign investment limits in several sectors and the ‘Make in India’ initiative, are bearing fruit,” said Moody’s in a report released on Thursday.

Net FDI inflows into India hit an all-time high in January 2016 at $3 billion on a 12-month moving average basis. India’s current account deficit is now more than covered by its FDI inflows. The basic balance (the sum of the current account balance and net FDI) returned to a surplus in 2015 after being in deficit from 2003 to end-2014.

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