Lok Sabha Question No. 2858 (UNSTARRED), answered on 2018-12-28
Subject: Promotion of Private Sector
Ministry: FINANCE
Asked by: KINJARAPU RAM MOHAN NAIDU

## GO\'ER}IMENT OFINDIA MINISTRY  OF FINANCE DEPARTMEI{T OF ECONOMIC AIT'AIRS

## LOK SABIIA TJNSTARRED QIJESTION NO. 2858

## TO BE ANSWERED  ON FRIDAY, DECEMBER 28, 2018 / PAUSH A 7, 1940 (SAKA)

## Promotion of Private Sector

## 2858:  SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister  of FINANCE be pleased  to state:

- (a) the measures  taken by the Government  in encouraging  private  sector  investment in the domestic markets; and
- (b) the breakdown  of growth in private sector investment over the last four  years,  StateruT-wise?

## ANSWER

## MIMSTf,R  OF STATE IN TIIE MINISTRY  OF FINAI\CE

## (SHRI PON. RADIIAKRISHNAN)

(a): The Government  has taken several steps  to boost domestic manufacturing  and investrnent,  including private  sector  investment.  Invest India, the national investment  promotion and facilitation agency, focuses  on sector-specific  investor  targeting  and development  of new parfirerships to enable sustainable investrnents in India. It also actively works with several  lndian states to build capacity as well as to bring in global best practices  in investrnent  targeting,  promotion and facilitation  areas. Schemes such as  'Startup India', 'Ease of Doing Business',  Modified Industrial  tnfrastructure  Up$adation  Scheme, Business Reform Action Plan, Intellectual Property Rights (IPR) Policy etc. have enabled  creation  ofa conducive environment for investrnent. Further, Foreigr Direct  Investrnent (FDI) policy and procedures have been simplified and liberalized  progressively.  The "Make-in-India"  program of the Central Government  has been launched to encourage private sector to manufacture  within India. In this corurection,  the Public hocurement  (Preference  to Make in India) O:dier 2017 notified  by Govemment  of India  mandates minimum  local content in goods and servioes procured by Govemment,  further giving a boost to Make in India-

To mobilize  private investment in infiastructure  s€ctors,  steps like, launching  of innovative financial  vohicles such as Infrastructure  Debt Funds, Infrastructure  Investnent  Trusts (nvlTs)/Real Estate Investment Trusts (REITs),  developing  new Public  hivate Partnership  (PPP) models like TollOperate-Transfer and Hybrid  Annuity Model, and periodic review  of Harmonized  Master List of Infrastructure Sub-sectors  have been taken. Activation  of the National Investrnent & Infrastructure Fund (NIIF) has also led to gleater availability  ofcapital for invesbnent in the infiastructure sector.

(b):  A Statement  indicating  the Gross  Capital  Formation  (GCF) of Private Sector in economy  is at Annexure-I.  The State-UT wise information in private sector invesfnent  is not compiled by the Central Statistics Office, Ministry of Statistics  and Programme Implementation.

## Annexure-I

## Statement referred to in reply to part (b) of Lok Sabha Unstarred  Question  No.2858  for 28.12.2018

## Gross Capital Formation (GCF) for Private Sector

(in Rs. crores)

| At current prices      | 2012-13   |     2013-14 | 2014-15   | 2015-16   |     2016-17 |
|------------------------|-----------|-------------|-----------|-----------|-------------|
| Private Corporations   | 1355836   | 1.44888e+06 | 1665493   | t875766   | 1.93094e+06 |
| Households             | 1465013   | 1.41643e+06 | t5t3t27   | t272105   | 1.39846e+06 |
| Total (Private Sector) | 2820849   | 2.86531e+06 | 3178620   | 3147871   | 3.3294e+06  |
| Growth rate (o/o)      |           | 1.6         | 10.9      | -1.0      | 5.8         |

(in Rs. crores)

| At 20ll-12 (constant) prices   | 2012-13   | 2013-14   | 2014-15   | 2015-16   |     2016-t7 |
|--------------------------------|-----------|-----------|-----------|-----------|-------------|
| Private Comorations            | 1308761   | 1360982   | 147t408   | 1656833   | 1.69791e+06 |
| Households                     | 1363683   | 124756t   | 1307051   | ttt7707   | 1.21001e+06 |
| Total (Private Sector)         | 2672444   | 260E543   | 2778459   | 2774540   | 2.90792e+06 |
| Growth rate (o/ol              |           | -2.4      | 6.5       | -0.1      | 4.8         |

Source: Statement  7.28 and 7.2C of 'lrlational  Account Statistics  2018"