Lok Sabha Question No. 1652 (UNSTARRED), answered on 2020-09-21
Subject: Incentives to Attract Foreign Companies
Ministry: COMMERCE AND INDUSTRY
Asked by: S.R. Parthiban

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 1652.

TO BE ANSWERED ON MONDAY, THE 21 ST   SEPTEMBER, 2020.

## INCENTIVES TO ATTRACT FOREIGN COMPANIES

## 1652. SHRI PARTHIBAN S.R.:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has offered/is planning to offer incentives to the new foreign companies to set up factories in the country due to COVID-19;
- (b) if so, the details thereof along with the aims and objectives thereto; and
- (c) the  time  by  which  the  said  decision  is  likely  to  be  implemented/come  into force?

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

The Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), wherein most of the sectors are open to  FDI  under  the  automatic  route.    It  is  a  constant  endeavour  of  the Government to facilitate foreign investment in manufacturing and other sectors of the country. To attain this objective, regular interaction are held with countries at bilateral & multilateral levels, active engagement with  industry  bodies  &  experts  are  held,  so  as  to  further    simplify procedures and regulations related to ease of doing business. These effort made over the years has not only improved our EoDB ranking to 63 in 2019 from 142 in 2014, it has also resulted  in the highest ever FDI Inflow of US $ 74.39 billion (provisional figure) in the country during the last financial year 2019-20, which is a new all-time high.

The  Government  reviews  the  FDI  policy  on  an  ongoing  basis  and makes  changes  from  time  to  time,  to  ensure  that  India  remains  an attractive    investor  destination.  The  intent  is  to  make  the  FDI  policy more  investor  friendly  and  remove  any  policy  bottlenecks  that  may have been hindering investment inflows into the country.

With  a  view  to  support  and  facilitate  investments  into  India,  the Government  is  working  hard  to  further  institutionalize  more  investor friendly  reforms.    The  Government  has  constituted  an  Empowered

- (a) to (c):

Group  of  Secretaries  (EGoS)  to  provide  support  and  facilitation  to investors for investing in India and to boost growth in key sectors of the economy.  EGoS shall identify potential investors/organisations, make recommendations  to  the  Ministry/Department  to  promote  investment, facilitate  hand-holding  of  investors,  examine  and  suggest  ways  to attract  more  investment  in  greenfield  projects.    Project  Development Cells (PDCs) have been set up in Ministries/Departments to fast track investments with coordination between Central Government Ministries and State Governments and thereby grow the pipeline of investments projects  in  India.    Several  steps  like  Production  Investment  Scheme, GIS  mapping  of  available  land  banks,  issuance  of  Quality  Control Orders  to  cut  down  cheap  imports  and  many  such  measures  have already  been  put  into  place  to  attract  further  investment  into  the country.  Investment decisions are based on all such conducive factors, facilitation of efforts between the Centre and State Governments and it is  envisaged  to  result  in  even  greater  amounts  of  FDI  inflows  and create  an  investment-friendly  and  business  conducive  ecosystem  to further drive investment growth in India.

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