Lok Sabha Question No. 1659 (UNSTARRED), answered on 2020-03-02
Subject: Investment Promotion
Ministry: FINANCE
Asked by: Rahul Kaswan, Shardaben Anilbhai Patel

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

## Lok SABHA UNSTARRED QUESTION NO. 1659

TO BE ANSWERED ON MONDAY, MARCH 2, 2020/Phalguna 12, 1941 (Saka)

Investment Promotion

1659: SHRI  RAHUL KASWAN:

SHRIMATI SHARDABEN ANILBHAI PATEL:

Will the Minister of FINANCE be pleased to state:

- (a)  Whether  the  Government  proposes  to  make  extensive  investment  in  the field of Agriculture especially in the area of irrigation;
- (b) If so, the details  thereof;
- (c)  the details of efforts made by the Government to promote foreign as well as domestic  investment  along  with  the  success  achieved  so  far  as  a  result
- thereof;  and
- (d) the  amount  of  foreign  and  domestic  investment  made  separately  in  the country during the last three years?

## ANSWER

## MINISTER OF  STATE (FINANCE)

## (SHRI ANURAG SINGH THAKUR)

(a) & (b): The Government has launched various policy and programmatic interventions  in  the  field  of  Agriculture,  including  irrigation.  A  statement indicating details of such schemes/programmes is at Annexure-I.

(c)&(d):  The  government  has  taken  various  steps  to  promote  foreign  and domestic investments in the country which, inter-alia, include measures to improve  ease  of  doing  business,  comprehensive  reforms  in  the  Foreign Direct Investment policy, introduction of Insolvency and Bankruptcy Code, 2016, launch of GST and reduction of Corporate tax. The Government has put  in  place  an  investor-friendly  policy  framework  which  is  transparent, predictable and easily comprehensible. The foreign investment regulatory regime has been liberalized significantly and currently, except for a small negative  list,  most  sectors/activities  are  allowed  to  avail  100%  foreign investment through the automatic route. As a result of the measures taken to improve the countries investment climate, India jumped to 63 rd place in the  World  Bank's  Ease  of  Doing  Business  Ranking  as  per  World  Bank's Doing Business Report, 2020. A table indicating the foreign and domestic investments in the country during the last three years is at Annexure-II.

## Statement referred to in reply to part (a) & (b) of LSUQ No. 1659

1.  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY) has  been  started  to provide a permanent solution from drought. Under it, Government is investing Rs  50,000  crore  for  a  period  of  five  years  to  develop  complete  irrigation supply chain, water resources, distribution network and farm-level application solutions to achieve the target of providing water for every farm.
2.  PMKSY has been approved for implementation across the country with an  outlay  of  Rs.50,000  crore  during  2015-2016  to  2019-2020. Further, during  2016-17,  ninety-nine  (99)  on-going  Major/Medium  irrigation  projects under PMKSY-AIBP having ultimate irrigation potential of 76.03 lakh hectare and  balance  estimated  cost  of  Rs.77595  crore  [Central  Assistance  (CA) component  of  Rs.31342  crore]  have  been  prioritized  in  consultation  with States  for  completion  in  phases  up  to  December,  2019  along  with  their Command  Area  Development  &  Water  Management  (CADWM)  works. Funding  mechanism  through  NABARD  has  also  been  approved  by  the Government for both Central and State share.
3. Department  of  Agriculture,  Cooperation  &  Farmers  Welfare  (DAC&FW)  is implementing  Per  Drop  More  Crop  component  of  Pradhan  Mantri  Krishi Sinchayee Yojana (PMKSY-PDMC) which focuses on enhancing water use efficiency  at  farm  level  through  Micro  Irrigation  technologies  viz.  Drip  and Sprinkler  Irrigation  systems.  An  area  of  42.15  lakh  ha  has  been  covered under Micro Irrigation  through PMKSY-PDMC since 2015-16 till 1 February 2020. A revolving fund micro-irrigation fund with corpus to Rs. 5000 crores is being  set  up  at  NABARD.    The  funds  will  support  top  up  subsidy  to  the State/UTs  for  utilization  of  funds  towards  MI  &  Innovative  project  under PMKSY.
4. Union Budget 2020-21 has a focus on agriculture sector and announced 16 action points towards the goal of doubling farmers income.

## (i) The FDI inflows for the past three years is as follows:

| S. No.   | Financial Year (April-March)    | FOREIGN DIRECT INVESTMENT INFLOWS (Amount in US$ Billion)   | FOREIGN DIRECT INVESTMENT INFLOWS (Amount in US$ Billion)   | FOREIGN DIRECT INVESTMENT INFLOWS (Amount in US$ Billion)   | FOREIGN DIRECT INVESTMENT INFLOWS (Amount in US$ Billion)   | FOREIGN DIRECT INVESTMENT INFLOWS (Amount in US$ Billion)   |
|----------|---------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| S. No.   | Financial Year (April-March)    | Equity Inflows                                              | Equity Inflows                                              | Reinvested Earnings                                         | Other capital                                               | Total FDI                                                   |
| S. No.   | Financial Year (April-March)    | FIPB                                                        | unincorporated bodies                                       | Reinvested Earnings                                         | Other capital                                               | Total FDI                                                   |
| 1        | 2016-17                         | 43.48                                                       | 1.23                                                        | 12.34                                                       | 3.17                                                        | 60.22                                                       |
| 1        | 2017-18 (P)                     | 44.86                                                       | 0.67                                                        | 12.54                                                       | 2.91                                                        | 60.98                                                       |
| 2        | 2018-19 (P)                     | 44.37                                                       | 0.69                                                        | 13.67                                                       | 3.27                                                        | 62.00                                                       |
| 3        | 2019-20 (P) upto November, 2019 | 26.10                                                       | 0.33                                                        | 6.53                                                        | 1.94                                                        | 34.90                                                       |

(source: DPIIT)

## (ii) Gross Capital Information

| Table: Capital formation at current prices (Rs. Crore)   | Table: Capital formation at current prices (Rs. Crore)   | Table: Capital formation at current prices (Rs. Crore)   | Table: Capital formation at current prices (Rs. Crore)   |
|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
|                                                          | 2016-17                                                  | 2017-18                                                  | 2018-19                                                  |
| Gross Fixed Capital Formation                            | 4335014                                                  | 4896813                                                  | 5569998                                                  |
| Gross Capital Formation                                  | 4741385                                                  | 5526853                                                  | Not available                                            |

Source: National Statistical Office