Lok Sabha Question No. 2330 (UNSTARRED), answered on 2018-03-09
Subject: Domestic Capital Investment
Ministry: FINANCE
Asked by: SANKAR PRASAD DATTA

## GOVERNMENT OF INDTA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED  QUESTION  NO. 2330

TO BE ANSWERED ON MARCH 09, 2018 / PHALGUNA  18, 1939 (SAKA)

## DOMESTIC CAPITAL INVESTMENT

## 2330: SHRI SANKAR PRASAD DATTA:

Wilt the Minister  of FINANCE be pleased to state:

- (a) the details  of total domestic capital investment  and foreign  capital investrnent  separately during the last three years;
- (b) whether  the Govemment has plans to encourage domestic  capital investments  and if so, the details thereof;
- (c) the measures taken  or proposed to be taken by the Govemment to increase domestic capital investment;  and
- (d) whether  adequate  steps have been taken to strengthen economic  credentials  and make  India strongest  economics ofthe world  and if so, the details thereofl

## ANSWER

## MINISTER OF STATE IN TTIE MINISTRY OF FINANCE (SHRI PON. RADHAKRISHNAN)

- (a): The details on Gross  Capital  Formation  ofthe economy  for the last three  years iue as under: -

| Year                         |                               | 2015-16   | 2016-17   |
|------------------------------|-------------------------------|-----------|-----------|
| (iross Capital Formation (in | At current prices             | 44,42,347 | 46,7t,426 |
| Rs. Crore)                   | At constant (2011- 12) prices | 39,24,530 | 40,84,802 |

The details ofFDI inflow reported during the last three  years are as under: -

| Year                         |   2014-15 |   2015-r6 |   2016-17 |
|------------------------------|-----------|-----------|-----------|
| FDI Inflow (in US$ billions) |     45.15 |     55.56 |     60.08 |

(b) to (d): Govemment  has taken various initiatives  to boost  investment and growth  of the economy  which, inter-alia, include; fillip to manufacturing, concrete measures  for transport  a:rd power sectors  as well as other urban and rural infrastructure,  comprehensive  reforms in the Foreign Direct Investment (FDI) policy and special package  for textile industry.  Initiatives and various facilitation measures under flagship progrzrmmes like Make-inJndia, Start-up  India, Stand-up India, Skill India and Digital India would improve the attractiveness and competitiveness of India globally and would help to develop  a fresh investment  cycle. The govemment  has also launched a phased program  for bank recapitalizattort-,  which  entails infusion of capital  to the public sector  banks,  to encourage  baxks to enhance lending.  The Insolvency and Bankruptcy Code has been enacted and the National  Company Law Tribunal established  to achieve insolvency resolution in a time bound manner. The introduction of the Goods and Services Tax (GST) has provided  a significant opportunity  to improve growth momentum by reducing  barriers to trade, business and related  economic  activities.

Budget  2018-19  included  various measures  to provide a push to the economy, which among others, include  major push to infrastructure via higher allocation  to rail & road sector, reduced corporate tax rate of25 per cent for companies with turnover up to Rs. 250 crore which is expected to help 99 per cent of MSMEs, formulation of a policy on Gold, monetization  of CPSE assets and using Fintech for enabling access to finance for MSMEs, among others. Government  also announced vatious measures in the Budget 201'7 -18 to promote growth in the economy which includes push to infrastructure development  by giving  infrastructure  status to affordable housing,  higher allocation to highway  construction,  and focus on coastal connectivity and launch of the Bharatmala  Pariyojana for highways  development.