Lok Sabha Question No. 2561 (UNSTARRED), answered on 2021-08-04
Subject: Impact of Climate on Indian Firms
Ministry: COMMERCE AND INDUSTRY
Asked by: Ravneet Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2561. TO BE ANSWERED ON WEDNESDAY, THE 4 TH  AUGUST, 2021.

## IMPACT OF CLIMATE ON INDIAN FIRMS

## 2561.  SHRI RAVNEET SINGH BITTU:

Will the Minister of COMMERCE AND INDUSTRY वाणिज्य  एवं उद्योग मंत्री

be pleased to state:

- (a) whether it is a fact that as per a recent study a very large number of Indian firms  are  expected to suffer potential financial  impact  due  to  climate-related risks in the next five years;;
- (b) if so, the details thereof along with the estimated loss to the Indian economy in this regard;
- (c) whether the Government is taking any steps to ensure maximum insulation of these  Indian  companies  from  suffering  huge  financial  losses  due  to  these climate related risks and to encourage a climate-focussed approach in these companies; and
- (d) 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) to (d):

Climate  actions  in  India  are  being  steered  under  the  overarching framework of the National Action Plan on Climate Change (NAPCC). It comprises eight missions in specific areas of solar, enhanced energy efficiency,  sustainable  habitat,  water,  Himalayan  ecosystem,  green India,  sustainable  agriculture,  and  strategic  knowledge  for  climate change.

As  regards  the  financial  sector,  several  measures  have  been  taken across the regulatory space to strengthen financial sector entities, ease access  to financial products, strengthen the grievance redressal mechanism  and  protect  the  interests  of  depositors/investors.  As  the economy  recovers  from  the  pandemic,  safeguarding  and  boosting financial resilience remains a top policy priority. .

Besides,  to  boost  industrial  activities,  Government  has  announced various  relief  measures  for  several  sectors  under  the  Atmanirbhar Bharat  Packages  announced  on 13th  May,  2020  to  17th  May,  2020, 12th October, 2020 & 12th November, 2020 involving a total amount of Rs.29,87,641  crore.  Besides,  a  Rs  6.28  lakh  crore  Covid  stimulus package  has  also  been  announced  on  28.06.2021.    Several  steps taken  by  DPIIT  to  boost  the  manufacturing  sector  are  achieving integration of India Industrial National Land Bank (GIS Land Bank) in 17  states;  covering  over  400  industrial  parks  under  Industrial  Park Rating System 2.0. Steps like Startup India Seed Fund Scheme; Credit Guarantee Scheme for Startups; Startup Ranking Framework; National Startup  Awards  etc  has  been  taken  to  build  a  strong  ecosystem  for nurturing  innovation  and  entrepreneurship;  continuation  of  Footwear Leather & Accessories Development Programme (FLADP) 2021-26 for boosting leather sector. Details of measures taken by DPIIT to boost Industrial activities in country is provided at Annexure I .

## ANNEXURE I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (d)  OF THE LOK SABHA UNSTARRED QUESTION NO.2561 FOR ANSWER ON 04.08.2021.

## Measures to boost Industrial activities

## 1. Ease of Doing Business and compliance burden:

-  Government is working with Central Ministries/ Departments and State Governments to get to the target of India being in top nations. India has improved its  rank from 142 to 63, a leap of 79 ranks, during the last 5 years in the World Bank's  Doing  Business  Report  (DBR).  With  a  view  to  track  implementation  of business reforms at the State and district level, State and District Reform Action Plan is also being promoted.
-  To translate the Aatmanirbhar Bharat vision into a reality, Government is working to  reduce  Compliance  Burden  on  businesses  and  citizens.  Initiatives  taken  for compliance reduction are focused on simplifying and digitizing various processes, reduction  in  documents  to  be  submitted  along  with  applications,  reduction  in frequency  of  inspections,  third-party  inspections,  auto-renewals,  decrease  in frequency of return filings and digital maintenance of registers/records.

## 2. Startup India:

-  India is counted as one of the largest startup ecosystem in the world with more than 50,775 recognized startups.
-  To  simplify  ease  of  starting  up,  till  9th  April  2021,  48  regulations  have  been simplified  since  the  launch  of  the  Startup  India  initiative.  To  enable  ease  of procurement, Central Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all Startups.
-  A Fund of Funds for Startups Scheme (FFS) with corpus of Rs. 10,000 crores to meet the funding needs of startups. Start-up India Seed Fund Scheme approved with an outlay of Rs 945 Crore. The scheme shall provide financial assistance to startups for proof of concept, market entry, commercialization, etc. It will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years.

## 3. Production Linked Incentive (PLI) Scheme:

-  Keeping in view India's vision of becoming 'Aatmanirbhar' and enhancing India's Manufacturing Capabilities and Exports, an outlay of Rs. 1.97 lakh crore has been announced  in  Union  Budget  2021-22  for  Production  Linked  Incentive  scheme (PLI) schemes for 13 key sectors for 5 years starting from fiscal year (FY) 202122.
-  DPIIT's PLI Scheme for White Goods (ACs and LED lights): The PLI Scheme with an  outlay  of  Rs  6238  crore  on  White  Goods  is  designed  to  create  complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. The scheme is expected to

attract global investments, generate large scale employment and enhance exports substantially.

## 4 . Foreign Direct Investment (FDI):

-  The  FDI  policy  reforms  carried  out  by  Government  in  the  last  seven  years  are nothing less than historic. In the last two years alone, reforms in the FDI policy have been undertaken across sectors such as Coal Mining, Contract Manufacturing, Digital Media, Single Brand Retail Trading, Insurance Intermediaries, Civil Aviation, Defence and Insurance Companies.
-  Measures  taken  by  the  Government  on  FDI  policy  reforms  have  resulted  in increased  FDI  inflows  in  the  country,  which  year  after  year  is  setting  up  new records.  FDI  inflow  in  India  stood  at  US$  45.15  billion  in  2014-15  and  has continuously  increased  since  then.  India  registered  its  highest  ever  annual  FDI inflow of US$ 81.72 billion (provisional figures) in the financial year 2020- 21.

## 5. Investment Promotion:

-  Empowered  Group  of  Secretaries  (EGoS)  &  Project  Development  Cells  (PDCs have been established in 30 Ministries/Departments of the Government of India, headed  by  respective  Joint  Secretary-level  nodal  officers.  It  aims  to  support, facilitate and provide an investor-friendly ecosystem to investors investing in India.
-  An  Investment  Clearance  Cell  (ICC)  to  provide  facilitation  and  support  to businesses  through  a  one-stop  digital  platform  -  the  central  Single  Window System  (SWS)  is  being  set  up.  This  national  portal  will  integrate  the  existing clearance  systems  of  the  various  Ministries/Departments  of  Govt.  of  India  and State Governments without disruption to the existing IT portals of Ministries.

## 6. Public Procurement:

-  Public procurement is a sizeable share of Indian economy. To promote domestic investment and usage of made in India products by the government, the Public Procurement (Preference to Make  in India) Order has been revised on 16.09.2020.  Some  of  the  salient  features  of  the  present  order  are:  a)  For purchases with estimated value less than Rs. 200 Crore, no Global tender enquiry will be issued. b) For the items, where there is sufficient local capacity and local competition,  Class  -1  local  suppliers  (i.e.  suppliers  offering  items  with  minimum 50%  domestic  value  addition)  are  only  eligible  to  bid  irrespective  of  purchase value.  In  all  other  purchases,  Class  -1  local  suppliers  get  purchase  preference over other suppliers in government procurement process.

## 7. India Industrial Land Bank (IILB):

-  Government  has  developed  a  national  level  land  bank  by  integrating  Industrial Information  System  (IIS)  with  State  industrial  GIS  systems.  This  will  enable  the investors to see plot level data and availability of updated land related information in  real  time.  Integration  with  17  states  achieved  and  currently  ongoing  with  6 States.

## 8. Industrial Corridor:

-  The  National  Industrial  Corridor  Programme  (NICP)  has  been  conceived  to promote world class manufacturing facilities and develop futuristic industrial cities in India. Eleven (11) Industrial Corridors have been identified with 32 nodes/projects proposed to be developed in 04 phases until 2024- 25.
-  Implementation  works  for  04  industrial  cities  under  Delhi  Mumbai  Industrial Corridor  (DMIC)  are  underway,  as  below;  a)  Trunk  infrastructure activities completed  for  02  nodes,  namely,  Integrated  Industrial  Township  (IITGN)  at Greater  Noida  (747  acres),  Uttar  Pradesh  and  Integrated  Industrial  Township (IITVUL) at Vikram Udyogpuri (1,100 acres), Ujjain in Madhya Pradesh. b) Trunk infrastructure  activities  nearing  completion  in  other  02  nodes,  namely,  Dholera Special  Investment  Region  (DSIR)  (22.5  sq.  kms),  Gujarat  and  Shendra  Bidkin Industrial Area (AURIC) (18.55 sq. kms), Aurangabad, Maharashtra.
-  Planning  &  development  activities  are  underway  for  21  nodes/projects  under Industrial Corridor Programme.

## 9. Intellectual Property Rights:

-  The  introduction  of  the  National  IPR  Policy,  2016  is  a  giant  leap  by  the Government of India to spur creativity and stimulate innovation. Some of the major achievements are: a) Filing and Processing fees for small entities reduced to 20% (from  the  existing  50%)  w.e.f  4.11.2020  as  compared  to  large  entities.  This  will incentivize Small entities to file for more patents. b) To encourage IPR protection amongst  Startups,  the  Scheme  for  Facilitating  Start-Ups  Intellectual  Property Protection (SIPP) which was  launched  in 2016  has  been  extended  upto 31.03.2023.  c)  80%  fee  concession  for  patent  application  filed  by  Startups whereas 50% fee concession for trademark applications by Startups, as compared to large entity.
-  Modernisation of IP offices: Offices under Controller General of Patents, Design and Trademarks (CGPDTM)  have  been  modernized  to enable e-filing of applications. With these steps, time required for Patent Examination reduced from average  72  months  in  2015  to  5-30  months  at  present,  depending  upon technology fields.
-  Patent filings increased by 36.8% and Examination increased by 223.3% in 202021 vis-à-vis 2014-15. Patent grants increased by 374.9%; Disposal increased by 269.8%.

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