Government targets FDI boost in chemicals, electronics, leather & footwear; Jan Vishwas 2.0 bill in final stages: Report

In line with its ease of doing business agenda, the government is preparing to introduce Jan Vishwas 2.0 legislation during the ongoing monsoon session of Parliament.

The Indian government has identified chemicals, electronics system design & manufacturing (ESDM), leather, and footwear as priority sectors for attracting more foreign direct investment (FDI), according to a report by The Economic Times.

An official told ET that the Department for Promotion of Industry and Internal Trade (DPIIT), along with Invest India, is actively engaging with states to draw more global investors. “There is a push to diversify supply chains and talks are happening even at the state level,” the official said.

The renewed efforts come at a time when FDI equity inflows dropped 24.5% to $9.34 billion in the March quarter compared to the previous year. Net FDI inflows have seen an even sharper decline, at just $35 million in May, down 98% year-on-year and 99% lower than April 2025, ET reported.

India aims to scale up its annual FDI inflows to $100 billion, up from the current $70–80 billion range.

As per the report, Andhra Pradesh and Karnataka are in discussions with DPIIT to frame strategies for attracting overseas investments. Meanwhile, Uttar Pradesh, Odisha, Madhya Pradesh, and Maharashtra are also showing strong traction in FDI interest.

Certain global toy manufacturers are also considering shifting parts of their supply chains to India, the official told ET.

The key sectors that continue to draw the maximum FDI inflows include:

Services

Computer software and hardware

Telecommunications

Trading

Construction development

Automobiles

Chemicals and pharmaceuticals

In line with its ease of doing business agenda, the government is preparing to introduce Jan Vishwas 2.0 legislation during the ongoing monsoon session of Parliament.

A cabinet note on the bill is in its final stages, an official told ET. The Jan Vishwas (Amendment of Provisions) Bill 2025 aims to decriminalise and deregulate more than 100 provisions across various laws, further reducing legal complexities for businesses.

Under the earlier Jan Vishwas Act 2023, the government decriminalised 183 provisions across 42 Acts, and eliminated or simplified over 40,000 compliances nationwide.