Lok Sabha Question No. 859 (UNSTARRED), answered on 2018-12-14
Subject: Capital Investment
Ministry: FINANCE
Asked by: KAPIL MORESHWAR PATIL

## GOVERNMENT OF'INDIA MINISTRY OF F'INA}ICE DEPARTMENT OF ECONOMIC AFFAIRS

## LOKSABHA UNSTARRED  QUESTION  NO. 859

TO BE ANSWERED  ON FRIDAY, DSCEMBER 14,2018 / AGRAHA^YANA  23, I94O (sAKA)

## Capital  Investment

## 859: SHRI KAPIL MORESTIWAR  PATIL:

Will the Minister of FINANCE be pleased to state:

- (a) the details of total domestic  capital  investment  and foreign capital investment during the last three years, separately;
- (b) whether  the Govemment proposes  to promote  domestic  capital investment  and ifso, the details thereof;
- (c) the steps taken/proposed  to be taken to increase domestic capital  irYestment;
- (d) whether  appropriate  steps have been taken  to increase financial credibility  and make India a strong economy;  and
- (e) If so, the details thereof?

## AI{SWER

## MINISTER OT'STATE IN THE MINISTRY OF FINANCE (SHRI PON. RADHAKRISTINAI9

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

(Rs. In crore)

| Year                    |                                                                          | 2014-1s     | 2015-16   | 2016-17     |
|-------------------------|--------------------------------------------------------------------------|-------------|-----------|-------------|
| Grogs Capital Formation | At current prices (including Net Capital Inflow from Rest of the World o | 41,t9,',;79 | 44,42,347 | t 46,71,426 |
|                         | Net Capital lnflow from Rest of the World                                | 1,59,822    | r,40,399  | 98,854      |
|                         | At constant (20 I 1- 12) prices                                          | 36,59,763   | 39,24,530 | 40,84,802   |

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

(in US$ million)

| Year                | 2015-16   | 2016-17 (Provisional)   | 2017-18 (Provisional)   |
|---------------------|-----------|-------------------------|-------------------------|
| FDI Equity trnflon, | 40,001    | 43,478                  | 44,857                  |
| Total FDI Inflon'   | 55,559    | 60,220                  | 60,974                  |

(b) to (e): Government  has taken various initiatives  to boost investment and growth of the economy  which,  inter-alia, include; fillip to manufacturing, concrete measures  for transport and power sectors as well as other urban and rural infrastructure,  comprehensive  reforms in the Foreign Direct Investrnent  ODI)  policy and special package for textile industry. Initiatives and various facilitation measures under flagship programmes like Make-in-Indi4  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 government  has also launched a phased progftrm  for bank recapitalization,  which entait$infirsion of capital  to the public sector  banks,  to encourage  banks to enhance lending. The Insolvency and Bankruptcy Code ha,s 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 Ta,x (GST) ha*s provided  a significant opportunity  to improve growth momentum by reducing barriers to trade, business and related economic  activities.  Steps taken under the Business Reform Action Plan has led to significant  improvement  in the Ease of Doing Business, which also has led to greater  incentive for domestic and foreign capital investments.

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 of 25 per cent for companies with turnover  up to Rs. 250 crore which is expected to help 99 per cent of MSMEs,  monetization of CPSE assets among others. Government also announced various  measures  in the Budget 2017-18 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.  Activation of the National lnveshent & Infrastructure Fund (NIIF) has also led to greater availability of capital for invesfrnent  in the infrastructure sector.

*rt***