I&B Ministry
‘Make in India’ initiative ups FDI equity inflows to 48% in a year
MUMBAI: The growth in Foreign Direct Investment (FDI) has been significant after the launch of ‘Make in India’ initiative in September 2014. The country has seen 48 per cent increase in FDI equity inflows during October 2014 to April 2015 over the corresponding period last year.
In 2014-15, the country witnessed unprecedented growth of 717 per cent to $40.92 billion of investment by Foreign Institutional Investors (FIIs). The FDI inflow under the approval route saw a growth of 87 per cent during 2014-15 with inflow of $2.22 billion despite more sectors having been liberalized during this period and with more than 90 per cent of FDI being on automatic route. These indicators showcase remarkable pace of approval being accorded by the government and confidence of investors in the resurgent India.
The increased inflow of FDI in India, especially in a climate of contracting worldwide investments, indicates the faith that overseas investors have imposed in the country’s economy and the reforms initiated by the Government towards ease of doing business. The Make in India initiatives of the Government and its outreach to all investors have made a positive investment climate for India which is evidenced in the results for the last financial year especially the second half.
The FDI inflow during the financial year 2014-15 was spread across the sectors evidencing the fact of positive eco-system of investment opportunities, which India is now providing- Services Sector, Telecommunication, Trading, Automobile Industry, Computer Software & Hardware, Drugs & Pharmaceuticals and Construction activities.
The FDI policy was amended to further enable a positive investment climate and sync it with the vision and focus areas of the present Government such as affordable housing, smart cities, financial inclusion and reforms in railway infrastructure. The Construction Development sector was allowed easy exit norms with rationalized area restrictions and due emphasis on affordable housing. The FDI cap in insurance and pension sector has been raised to 49 per cent.
100 per cent FDI has been allowed in railway infrastructure, excluding operations and also in the medical devices sector.
Further the definition of NRI was expanded to include Overseas Citizen of India (OCI) cardholders as well as Persons of Indian Origin (PIO) cardholders. NRIs investment under Schedule 4 of Foreign Exchange Management Act, 1999 (FEMA), Regulations will be deemed to be domestic investment made by residents, thereby giving flexibility to NRIs to invest in India.
I&B Ministry
Government sets up AI governance group to steer policy
AIGEG to align ministries, assess jobs impact, guide AI deployment.
MUMBAI: If artificial intelligence is the engine, the government is now building the dashboard and making sure everyone reads from the same screen. The Centre has constituted a new inter-ministerial body to coordinate India’s approach to AI, formalising a key recommendation from its governance framework and the Economic Survey. The AI Governance and Economic Group (AIGEG), set up by the Ministry of Electronics and Information Technology, will act as the central platform to align AI-related policy across ministries, regulators and departments, an attempt to bring coherence to what has so far been a fragmented and fast-evolving landscape.
The group will be chaired by union minister Ashwini Vaishnaw, with minister of state Jitin Prasada as vice chairperson. Its composition reflects both technological and economic priorities, bringing together the principal scientific adviser, the chief economic adviser, and the CEO of NITI Aayog, alongside key secretaries from telecommunications, economic affairs and science and technology. A representative from the National Security Council Secretariat is also part of the group, while the MeitY secretary will serve as member convenor.
At its core, AIGEG is designed to do two things: coordinate and anticipate. On the policy front, it will review existing regulatory mechanisms, issue guidance across sectors and ensure companies remain compliant with evolving legal frameworks. Beyond that, it will oversee national initiatives on AI governance, with a focus on enabling responsible innovation rather than merely regulating it.
The economic dimension is equally central. The group has been tasked with assessing how AI-driven automation could reshape jobs identifying which roles are most at risk, where those impacts may be geographically concentrated, and whether technology will augment or replace human labour. Based on these assessments, it will develop mitigation strategies and transition plans, signalling a more proactive stance on workforce disruption.
In parallel, AIGEG will work with industry stakeholders to chart a long-term roadmap for AI adoption, categorising use cases into “deploy”, “pilot” or “defer” buckets depending on readiness factors such as data availability, skill levels and regulatory clarity. The aim is to move from broad ambition to structured execution deciding not just what can be built, but what should be built now.
The group will function as the apex layer in India’s AI governance architecture, supported by a Technology and Policy Expert Committee that will track global developments, emerging risks and regulatory priorities. Together, the two bodies are expected to shape both the pace and direction of AI adoption in the country.
In a landscape where technology often outruns policy, the creation of AIGEG signals an attempt to close that gap ensuring that India’s AI journey is not just rapid, but also coordinated, accountable and economically grounded.
