Lok Sabha Question No. 3532 (UNSTARRED), answered on 2023-03-22
Subject: FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Ritesh Pandey

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

## LOK SABHA

## UNSTARRED QUESTION NO. 3532.

TO BE ANSWERED ON WEDNESDAY, THE 22 ND  MARCH, 2023.

FDI

## 3532.  SHRI RITESH PANDEY:

Will the Minister of COMMERCE AND INDUSTRY

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of the FDI received in the last five years, sector and State-wise;
- (b) the  details  of  the  growth  in  manufacturing  sector  in  the  last  five  years, State-wise;
- (c) whether the Government is contemplating a policy framework to attract foreign investors who are currently shifting from China to Southeast Asia;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) whether  the  Government  is  bringing  in  reforms  in  the  labour  market,  land acquisition  and  ease  of  doing  business  to  incentivise  foreign  companies  to set-up their manufacturing plants in India; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) : The total FDI inflow includes equity inflow, equity capital of unincorporated bodies, re-invested earnings, and other capital. The sector and state wise details  are  maintained  only  for  equity  component  of  total  FDI  inflow.  The sector-wise details of FDI equity inflow received in the last five years are at Annexure-I. The state-wise details which are maintained w.e.f. October, 2019 are at Annexure-II.
- (b): State wise growth, as gross state value added from manufacturing sector at constant (2011-12) prices, in the last five years is given at  Annexure -III.
- (c) & (d): To attract foreign investors, the Government has put in place an       investorfriendly  policy,  wherein  most  sectors  except  certain  strategically  important sectors are open for 100% FDI under the automatic route. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive and investor friendly destination. Changes are made in the policy after having consultations with stakeholders including apex industry chambers, associations,  representatives  of  industries/groups  and  other  organizations. Government has recently undertaken a number of reforms across sectors. In

be pleased to state:

the last one year alone, reforms in the FDI policy have been undertaken in sectors such as Insurance, Petroleum & Natural Gas, Telecom, etc.

- (e) & (f): Major reforms undertaken by Government to incentivize the  manufacturing sector are as follows:
-  Labour  Reforms: The  Government  has  formulated  four  Labour Codes, namely, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety,  Health  and  Working  Conditions  Code,  2020  and  published these Codes in the official gazette for general information. These four Labour  Codes,  while strengthening the protection available to workers,  including  unorganized  workers,  promote  ease  of  doing business and ease in compliance in order to catalyse setting up of more enterprises leading to creation of more employment opportunities in the country.
-  DIGITAL INDIA LAND RECORDS MODERNIZATION PROGRAMME : Government is running  a scheme namely `Digital India Land Record Modernization Programme (DILRMP)' with aims to digitize/ tagging of land records, including mutations, improve transparency in the land records maintenance system, digitize maps and survey, update all settlement records and minimize the scope of land disputes. It has 3 major components - (a) Computerization of land record (b) Survey/re-survey (c) Computerization of Registration. This scheme is very helpful for land acquisition transaction in reference to ease of doing business.
-  Industrial Corridor Development Programme: In order to accelerate growth in manufacturing, Government of India (GoI) has adopted the strategy of developing Industrial Corridors in partnership with  State  Governments.  The  objective  of  this  programme  is  to develop  Greenfield  Industrial  regions/areas/nodes  with  sustainable infrastructure & make available Plug and Play Infrastructure at the plot level.  As  part  of  National  Industrial  Corridor  Program,  11  Industrial Corridors are being developed in 4 phases.
-  Ease of Doing Business: The objective is to improve Ease of Doing Business and Ease of Living by Simplifying, Rationalizing, Digitizing and Decriminalizing Government to Business and Citizen Interfaces across Ministries/States/UTs. The key focus areas of the initiative are simplification of procedures, rationalization of legal provisions, digitization of government processes, and decriminalization of minor, technical or procedural defaults.
-  Foreign Direct Investment (FDI): Para 5.2.5 of the FDI Policy provides FDI Policy provisions w.r.t manufacturing as follows:

5.2.5.1 Subject to the provisions of the FDI policy, foreign investment in  'manufacturing'  sector  is  under  automatic  route.  Manufacturing activities may be either self-manufacturing by the investee entity or contract  manufacturing  in  India  through  a  legally  tenable  contract, whether on Principal to Principal or Principal to Agent basis. Further, a manufacturer is permitted to sell its products manufactured in India through  wholesale  and/or  retail,  including  through  e-commerce, without Government approval.

5.2.5.2 Notwithstanding the FDI policy provisions on trading sector, 100%  FDI  under  Government  approval  route  is  allowed  for  retail trading,  including through e-commerce, in respect of food products manufactured and/or produced in India.

-  Production Linked Incentive scheme : Keeping in view India's vision of becoming 'Atmanirbhar', Production Linked Incentive (PLI) Schemes for 14 key sectors is under implementation with an outlay of Rs. 1.97 lakh crore to enhance India's Manufacturing capabilities and Exports. These schemes have potential for creation of high production,  economic  growth,  exports  and  significant  employment over  the  next  five  years  and  more.  Under  this  scheme,  717 applications have been approved till date. Total investment amounting to nearly Rs. 50,000 crores has been received till date. It has led to production having worth of more than Rs. 4 lakh crore. It has also led to employment to nearly 3 lakh people.
-  National Single Window System: The setting up of National Single Window System (NSWS) was announced in the Budget 2020-21 with the  objective  to  provide  'end  to  end'  facilitation  and  support  to investors,  including  pre-investment  advisory,  provide  information related to land banks and facilitate clearances at Centre and State level. Envisioned as a one-stop shop for investor related approvals and  services  in  the  country,  the  National  Single  Window  System (NSWS)  was  soft-launched  on  22nd  September,  2021  by  Hon'ble Commerce & Industry Minister. Large number of States/UTs Single Window Systems have been linked with the NSWS Portal thereby providing  access  to  approvals  of  these  States/UTs  to  be  applied through NSWS.
-  PM  Gati  Shakti  National  Master  Plan  (NMP): PM  Gati  Shakti National  Master  Plan  (NMP),  a  GIS  based  platform  with  portals  of various  Ministries/Departments  of  Government,  was  launched  in October, 2021. It is a transformative approach to facilitate data-based decisions related to integrated planning of multimodal infrastructure, thereby  reducing  logistics  cost.  Empowered  Group  of  Secretaries (EGoS) and Network Planning Group (NPG) have been created as institutional arrangement. For enhanced capital expenditure by states for infrastructure development, the Ministry of Finance, Department of Expenditure through the 'Scheme for Special Assistance to States for Capital  Investment  for  2022-23'  on  6th  April  2022  has  made  a additional provision of Rs. 1,00,000 crore for disbursement among the states as long term loans at a zero interest rate. Out of this, under Part II of the scheme Rs 5,000 crore are specifically provided for PM Gati Shakti related expenditure.

*******

Annexure-I ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 3532 FOR ANSWER ON 22 nd  MARCH, 2023 REGARDING 'FDI'.

| STATEMENT ON SECTOR-WISE FDI EQUITY INFLOW FROM April 2017 TO March 2022 (Amount in USD million)   | STATEMENT ON SECTOR-WISE FDI EQUITY INFLOW FROM April 2017 TO March 2022 (Amount in USD million)                           | STATEMENT ON SECTOR-WISE FDI EQUITY INFLOW FROM April 2017 TO March 2022 (Amount in USD million)   |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Sr. No.                                                                                            | Sector                                                                                                                     | FDI Equity Inflow                                                                                  |
| 1                                                                                                  | COMPUTER SOFTWARE & HARDWARE                                                                                               | 60,847.77                                                                                          |
| 2                                                                                                  | SERVICES SECTOR (Fin., Banking, Insurance, Non Fin/Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis, Other) | 35,879.85                                                                                          |
| 3                                                                                                  | TRADING                                                                                                                    | 20,525.59                                                                                          |
| 4                                                                                                  | CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES                                                                                   | 18,151.46                                                                                          |
| 5                                                                                                  | AUTOMOBILE INDUSTRY                                                                                                        | 16,167.79                                                                                          |
| 6                                                                                                  | TELECOMMUNICATIONS                                                                                                         | 14,385.16                                                                                          |
| 7                                                                                                  | METALLURGICAL INDUSTRIES                                                                                                   | 6,684.08                                                                                           |
| 8                                                                                                  | NON-CONVENTIONAL ENERGY                                                                                                    | 6,442.15                                                                                           |
| 9                                                                                                  | EDUCATION                                                                                                                  | 6,307.67                                                                                           |
| 10                                                                                                 | HOTEL & TOURISM                                                                                                            | 6,243.55                                                                                           |
| 11                                                                                                 | CHEMICALS (OTHER THAN FERTILIZERS)                                                                                         | 6,159.24                                                                                           |
| 12                                                                                                 | DRUGS & PHARMACEUTICALS                                                                                                    | 4,698.46                                                                                           |
| 13                                                                                                 | CONSULTANCY SERVICES                                                                                                       | 4,305.93                                                                                           |
| 14                                                                                                 | POWER                                                                                                                      | 4,298.10                                                                                           |
| 15                                                                                                 | ELECTRICAL EQUIPMENTS                                                                                                      | 4,132.88                                                                                           |
| 16                                                                                                 | HOSPITAL & DIAGNOSTIC CENTRES                                                                                              | 3,586.10                                                                                           |
| 17                                                                                                 | FOOD PROCESSING INDUSTRIES                                                                                                 | 3,540.96                                                                                           |
| 18                                                                                                 | INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA)                                                                         | 3,180.60                                                                                           |
| 19                                                                                                 | RETAIL TRADING                                                                                                             | 2,973.65                                                                                           |
| 20                                                                                                 | MISCELLANEOUS INDUSTRIES                                                                                                   | 2,952.20                                                                                           |
| 21                                                                                                 | AIR TRANSPORT (INCLUDING AIR FREIGHT)                                                                                      | 2,526.39                                                                                           |
| 22                                                                                                 | SEA TRANSPORT                                                                                                              | 2,217.33                                                                                           |
| 23                                                                                                 | CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects                | 1,916.33                                                                                           |
| 24                                                                                                 | ELECTRONICS                                                                                                                | 1,863.42                                                                                           |
| 25                                                                                                 | INDUSTRIAL MACHINERY                                                                                                       | 1,799.62                                                                                           |
| 26                                                                                                 | PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)                                                                      | 1,550.66                                                                                           |
| 27                                                                                                 | TEXTILES (INCLUDING DYED,PRINTED)                                                                                          | 1,522.53                                                                                           |
| 28                                                                                                 | FERMENTATION INDUSTRIES                                                                                                    | 1,455.93                                                                                           |
| 29                                                                                                 | PETROLEUM & NATURAL GAS                                                                                                    | 1,154.04                                                                                           |
| 30                                                                                                 | SOAPS, COSMETICS & TOILET PREPARATIONS                                                                                     | 1,042.58                                                                                           |
| 31                                                                                                 | RUBBER GOODS                                                                                                               | 994.16                                                                                             |
| 32                                                                                                 | MINING                                                                                                                     | 981.31                                                                                             |
| 33                                                                                                 | MEDICAL AND SURGICAL APPLIANCES                                                                                            | 829.61                                                                                             |
| 34                                                                                                 | MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES                                                                          | 798.73                                                                                             |
| 35                                                                                                 | PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)                                                                             | 794.38                                                                                             |
| 36                                                                                                 | GLASS                                                                                                                      | 754.61                                                                                             |
| 37                                                                                                 | AGRICULTURE SERVICES                                                                                                       | 633.30                                                                                             |
| 38                                                                                                 | AGRICULTURAL MACHINERY                                                                                                     | 536.62                                                                                             |

| 39   | RAILWAY RELATED COMPONENTS                                | 429.95     |
|------|-----------------------------------------------------------|------------|
| 40   | PAPER AND PULP (INCLUDING PAPER PRODUCTS)                 | 340.03     |
| 41   | VEGETABLE OILS AND VANASPATI                              | 332.13     |
| 42   | DIAMOND,GOLD ORNAMENTS                                    | 317.09     |
| 43   | CEMENT AND GYPSUM PRODUCTS                                | 250.34     |
| 44   | EARTH-MOVING MACHINERY                                    | 177.41     |
| 45   | MACHINE TOOLS                                             | 171.06     |
| 46   | FERTILIZERS                                               | 146.49     |
| 47   | CERAMICS                                                  | 132.92     |
| 48   | COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS                 | 99.90      |
| 49   | BOILERS AND STEAM GENERATING PLANTS                       | 69.12      |
| 50   | TIMBER PRODUCTS                                           | 56.61      |
| 51   | LEATHER,LEATHER GOODS AND PICKERS                         | 55.16      |
| 52   | TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER) | 52.28      |
| 53   | SCIENTIFIC INSTRUMENTS                                    | 48.90      |
| 54   | SUGAR                                                     | 34.95      |
| 55   | GLUE AND GELATIN                                          | 25.11      |
| 56   | DYE-STUFFS                                                | 14.05      |
| 57   | INDUSTRIAL INSTRUMENTS                                    | 13.03      |
| 58   | DEFENCE INDUSTRIES                                        | 7.39       |
|      | Gross-Total                                               | 257,608.65 |

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Annexure-II

ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 3532 FOR ANSWER ON 22 nd  MARCH, 2023 REGARDING 'FDI'.

| STATEMENT ON SECTOR-WISE FDI EQUITY INFLOW FROM April 2019 TO March 2022 (Amount in USD million)   | STATEMENT ON SECTOR-WISE FDI EQUITY INFLOW FROM April 2019 TO March 2022 (Amount in USD million)   | STATEMENT ON SECTOR-WISE FDI EQUITY INFLOW FROM April 2019 TO March 2022 (Amount in USD million)   |
|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Sr. No.                                                                                            | State Name                                                                                         | Amount of FDI Equity Inflow                                                                        |
| 1                                                                                                  | MAHARASHTRA                                                                                        | 39,164.67                                                                                          |
| 2                                                                                                  | KARNATAKA                                                                                          | 34,031.41                                                                                          |
| 3                                                                                                  | GUJARAT                                                                                            | 27,187.09                                                                                          |
| 4                                                                                                  | DELHI                                                                                              | 17,658.89                                                                                          |
| 5                                                                                                  | TAMIL NADU                                                                                         | 6,332.69                                                                                           |
| 6                                                                                                  | HARYANA                                                                                            | 5,222.42                                                                                           |
| 7                                                                                                  | TELANGANA                                                                                          | 3,442.24                                                                                           |
| 8                                                                                                  | JHARKHAND                                                                                          | 2,650.53                                                                                           |
| 9                                                                                                  | RAJASTHAN                                                                                          | 1,168.49                                                                                           |
| 10                                                                                                 | WEST BENGAL                                                                                        | 1,033.90                                                                                           |
| 11                                                                                                 | UTTAR PRADESH                                                                                      | 881.63                                                                                             |
| 12                                                                                                 | PUNJAB                                                                                             | 868.24                                                                                             |
| 13                                                                                                 | KERALA                                                                                             | 617.45                                                                                             |
| 14                                                                                                 | ANDHRA PRADESH                                                                                     | 511.78                                                                                             |
| 15                                                                                                 | MADHYA PRADESH                                                                                     | 490.85                                                                                             |
| 16                                                                                                 | BIHAR                                                                                              | 167.09                                                                                             |
| 17                                                                                                 | HIMACHAL PRADESH                                                                                   | 160.82                                                                                             |
| 18                                                                                                 | Dadra and Nagar Haveli and Daman and Diu                                                           | 150.04                                                                                             |
| 19                                                                                                 | ODISHA                                                                                             | 128.13                                                                                             |
| 20                                                                                                 | UTTARAKHAND                                                                                        | 123.99                                                                                             |
| 21                                                                                                 | GOA                                                                                                | 118.39                                                                                             |
| 22                                                                                                 | CHANDIGARH                                                                                         | 64.99                                                                                              |
| 23                                                                                                 | PUDUCHERRY                                                                                         | 58.85                                                                                              |
| 24                                                                                                 | State Not Indicated                                                                                | 28.27                                                                                              |
| 25                                                                                                 | ASSAM                                                                                              | 18.53                                                                                              |
| 26                                                                                                 | ARUNACHAL PRADESH                                                                                  | 5.55                                                                                               |
| 27                                                                                                 | MEGHALAYA                                                                                          | 1.10                                                                                               |
| 28                                                                                                 | CHHATTISGARH                                                                                       | 1.01                                                                                               |
| 29                                                                                                 | TRIPURA                                                                                            | 0.56                                                                                               |
| 30                                                                                                 | JAMMU AND KASHMIR                                                                                  | 0.36                                                                                               |
| 31                                                                                                 | LADAKH                                                                                             | 0.16                                                                                               |
| 32                                                                                                 | NAGALAND                                                                                           | 0.01                                                                                               |

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Annexure-III ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARREDQUESTION NO. 3532 FOR ANSWER ON 22 nd  MARCH, 2023 REGARDING 'FDI'. STATE WISE GROWTH, AS GROSS STATE VALUE ADDED FROM MANUFACTURING SECTOR AT CONSTANT (2011-12) PRICES

(% Growth over previous year)

| Sl. No.   | State\UT                  | 2017-18   | 2018-19   | 2019-20   | 2020-21   | 2021-22   |
|-----------|---------------------------|-----------|-----------|-----------|-----------|-----------|
| (1)       | (2)                       | (3)       | (4)       | (5)       | (6)       | (7)       |
| 1         | Andhra Pradesh            | 8.52      | 8.85      | 0.10      | 6.12      | 7.42      |
| 2         | Arunachal Pradesh         | -25.14    | 31.27     | -56.69    | 11.87     | 17.96     |
| 3         | Assam                     | 13.54     | 0.58      | 3.16      | 19.81     | 8.61      |
| 4         | Bihar                     | 4.84      | -1.33     | 2.84      | -6.04     | 1.18      |
| 5         | Chhattisgarh              | 10.59     | 27.18     | 1.70      | -0.59     | 7.60      |
| 6         | Goa                       | 2.55      | 3.71      | -1.31     | -1.67     | -2.64     |
| 7         | Gujarat                   | 11.30     | 12.70     | 5.76      | -5.29     | 12.89     |
| 8         | Haryana                   | 1.93      | 15.64     | -4.59     | 0.77      | 11.77     |
| 9         | Himachal Pradesh          | 12.73     | 10.12     | 0.88      | -7.33     | 11.33     |
| 10        | Jammu & Kashmir*          | 3.15      | -1.83     | NA        | NA        | NA        |
| 11        | Jharkhand                 | 13.99     | 22.38     | -9.46     | 0.25      | 5.20      |
| 12        | Karnataka                 | 1.61      | 6.35      | -5.64     | -2.89     | 11.11     |
| 13        | Kerala                    | 6.06      | -5.28     | -0.98     | 2.39      | 3.63      |
| 14        | Madhya Pradesh            | 7.73      | 28.00     | -15.74    | -0.85     | 14.19     |
| 15        | Maharashtra               | 2.59      | 0.48      | -7.49     | -5.72     | 4.19      |
| 16        | Manipur                   | -2.39     | -2.08     | -29.14    | 2.30      | -9.64     |
| 17        | Meghalaya                 | 22.57     | 4.40      | 14.95     | -2.37     | 18.42     |
| 18        | Mizoram                   | -6.51     | 6.14      | 23.89     | -4.50     | -4.50     |
| 19        | Nagaland                  | 0.87      | 11.15     | -8.23     | -1.71     | 25.07     |
| 20        | Odisha                    | 20.54     | 18.53     | -11.51    | 5.95      | 9.27      |
| 21        | Punjab                    | 5.85      | 4.92      | 1.61      | 0.50      | 6.63      |
| 22        | Rajasthan                 | 2.08      | 12.71     | 9.51      | -1.88     | 12.03     |
| 23        | Sikkim                    | 15.97     | 4.86      | -4.40     | -3.96     | 8.71      |
| 24        | Tamil Nadu                | 10.90     | 8.31      | -0.63     | -0.99     | 10.45     |
| 25        | Telangana                 | 9.25      | 16.54     | -2.00     | -2.26     | 11.30     |
| 26        | Tripura                   | -11.48    | -6.83     | 11.61     | -2.12     | 0.89      |
| 27        | Uttar Pradesh             | -10.94    | -5.82     | 2.69      | -4.24     | 13.57     |
| 28        | Uttarakhand               | 6.72      | -0.57     | -1.30     | -1.66     | 8.80      |
| 29        | West Bengal               | 11.51     | 17.58     | -1.43     | -7.01     | 17.25     |
| 30        | Andaman & Nicobar Islands | -12.42    | -9.39     | -10.33    | -1.11     | NA        |
| 31        | Chandigarh                | -11.12    | 21.70     | -2.24     | 0.84      | 6.08      |
| 32        | Delhi                     | 0.47      | 2.13      | 4.96      | -10.44    | 11.03     |
| 33        | Jammu & Kashmir-UT        | NA        | NA        | NA        | -1.64     | 5.78      |
| 34        | Puducherry                | 9.51      | 75.13     | -12.04    | -0.93     | 2.96      |

Source:  Ministry of Statistics & Programme Implementation. * relates to Jammu and Kashmir and Ladakh

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