Lok Sabha Question No. 2948 (UNSTARRED), answered on 2021-12-15
Subject: Shifting Production from China to India
Ministry: COMMERCE AND INDUSTRY
Asked by: Rakesh Singh

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2948. TO BE ANSWERED ON WEDNESDAY, THE 15 TH  DECEMBER, 2021.

## SHIFTING PRODUCTION FROM CHINA TO INDIA

## 2948.  SHRI RAKESH SINGH:

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

- (a) whether the global companies are closing their business in China and moving to other countries and if so, the details thereof;
- (b) whether the Government has taken any steps to set up global business in the country and to take advantage of the said opportunity;
- (c) if so, the details thereof;
- (d) whether the Government has got success in the said work and the said global companies have set up their business in the country; and
- (e) if so, the details thereof?

## 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 (e): Various initiatives/schemes have been launched by  Government for  promoting growth and attracting investment in India. The Make in India programme was launched on 25th September, 2014 with aim of facilitating  enhanced  investment, foster innovation, build best in class infrastructure,  and  make  India  a  hub  for  manufacturing,  design,  and innovation. Continuous efforts are made under Investment Facilitation and Outreach for implementation of Make in India action plans to identify potential investors, support Indian Missions abroad and State Governments  for  organizing  events,  summits,  road-shows  and  other promotional activities to attract investments in the country.

Measures have been taken to improve the country's investment climate, as a result of which India jumped to 63rd place in World Bank's Ease of Doing Business [EODB] ranking as per World Bank's Doing Business Report  (DBR)  2020  from  a  rank  of  142  in  2014.   Department  for Promotion of Industry and Internal Trade (DPIIT), in consultation with the State Governments, has also started a comprehensive reform exercise in States and UTs in December 2014. Under Business Reforms Action Plan (BRAP), all States/UTs in the country are ranked on the basis of reforms implemented by them on designated parameters. This exercise has helped in improving business environment across States.

An Empowered  Group  of  Secretaries has  been  constituted  to  fast track investments in the country. Similarly Project  Development Cells (PDCs) have been set up across Central Government Ministries / Departments  to  handhold  investors  and  spur  sectoral  and  economic growth. Further, a GIS-enabled India Industrial Land Bank has been launched to help investors identify their preferred location for investment.   National  Single  Widow  System   (NSWS)  has   also  been soft launched in September, 2021 to facilitate clearances  for  investors.

Keeping in view India's vision of becoming 'Atmanirbhar' and to enhance India's  manufacturing  capabilities  and  exports,  an  outlay  of  INR  1.97 lakh crore (over US$ 26 billion) has been announced in Union Budget 2021-22 for Production Linked Incentives (PLI) schemes for 14 key sectors of manufacturing starting from fiscal year (FY) 2021-22.  With the announcement of PLI Schemes, significant creation of production, employment, and economic growth is expected over the next 5 years and more.

Measures  taken  by  the  Government  including  on  FDI  Policy  reforms have resulted in increased FDI inflows in  the country year after year. India registered its highest ever annual FDI inflow of US$ 81.97 billion (provisional  figures)  in  the  financial  year  2020-21  despite  the  COVID related disruptions. These trends in India's FDI are an endorsement of its status as a preferred investment destination amongst global investors. In the last seven financial years (2014-21), India has received FDI inflow worth US$ 440.27 billion which is nearly 58 percent of the FDI reported in  the  last  21  years  (US$  763.83  billion).   This  indicates  increasing inclination of global companies to set up their business in India.

Government  has  taken various  other  steps in  addition  to  ongoing schemes  to  boost  domestic  and  foreign  investments  in  India.  These include  measures  to  reduce  compliance  burden  for  industry,  National Infrastructure  Pipeline,  Reduction  in  Corporate  Tax,  Easing  liquidity problems  of  NBFCs  and  Banks,  Policy  measures  to  boost  domestic manufacturing through Public Procurement Orders, Phased Manufacturing Programme (PMP), and Schemes for Production Linked Incentives (PLI) of various Ministries, India Industrial  Land  Bank, Industrial  Park  Rating  System  etc. With  the  announcement  of  PLI Schemes, significant creation of production, employment, and economic growth is expected over the next 5 years and more.

Besides  the  above,  activities  are  also  undertaken  through  schemes/ programmes, by several Central Government  Ministries / Departments and various State Governments from time to time. The details of these measures are not centrally maintained by Department for Promotion of Industry and Internal Trade.

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