Poddar points out that the recent announcement by a large Taiwanese manufacturer to invest $5 billion in Maharashtra is significant as this is precisely the kind of FDI that India needs to move labor from low productivity agriculture to higher productive and labor-intensive manufacturing. He notes the recent announcements indicate the FDI pipeline remains strong. The analyst notes inflows from the increase in FDI limits in insurance are also coming through with a large global insurance company announcing an increase in its stake with a local partner over the weekend.
Gleaning data from recent economic numbers, Poddar points out that FDI flows into India increased in 2014 to $41 billion, and FDI inflows in the first half of 2015 were $26 billion.