What Are Investment Models Followed By India? | UPSC Economy

Investment is an essential part of any economy, and India has been focusing on creating a conducive environment for investors for a long time

Public-Private Partnership (PPP) Model:

This model involves collaboration between the government and private sector to carry out large-scale projects. PPP is used in various sectors such as infrastructure, healthcare, education, and energy. The government provides land, permits, and subsidies, and the private sector brings in investment and expertise.

Foreign Direct Investment (FDI):

FDI is a critical component of India’s economic growth strategy. The government has implemented several policies to encourage FDI in various sectors such as manufacturing, construction, and services. FDI allows foreign companies to invest in Indian businesses, creating jobs and boosting the economy.

Make in India Initiative:

Launched in 2014, the Make in India initiative aims to transform India into a global manufacturing hub. The initiative focuses on 25 sectors such as automobiles, defense, and pharmaceuticals, and offers various incentives such as tax exemptions, subsidies, and land acquisition assistance.

National Investment and Infrastructure Fund (NIIF):

NIIF was established in 2015 as a fund of funds to invest in infrastructure projects. The government has committed to invest up to Rs 20,000 crore in NIIF, which aims to raise Rs 40,000 crore from private investors. NIIF is also working on creating a platform for financing renewable energy projects.

Start-up India:

The Start-up India initiative aims to promote entrepreneurship and innovation in India. The government offers various incentives such as tax exemptions, funding, and mentorship to start-ups. The initiative has helped create a vibrant start-up ecosystem in India, with several successful start-ups such as Flipkart, Ola, and Paytm.

Digital India:

Launched in 2015, the Digital India initiative aims to transform India into a digitally empowered society and knowledge economy. The initiative focuses on creating a robust digital infrastructure, promoting e-governance, and promoting digital literacy. Digital India has created several opportunities for investors in the technology sector.

India has implemented various investment models to attract domestic and foreign investors. These models have been successful in creating jobs, boosting the economy, and promoting innovation

Also Read

• How Was The Economy on Eve of Independence? | UPSC Economy
• What Is Drone Technology? | UPSC Science And Technology