Lok Sabha Question No. 1536 (UNSTARRED), answered on 2021-02-10
Subject: Incentives to Foreign Companies
Ministry: COMMERCE AND INDUSTRY
Asked by: S.R. Parthiban

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1536. TO BE ANSWERED ON WEDNESDAY, THE 10 TH  FEBRUARY, 2021.

## INCENTIVES TO FOREIGN COMPANIES

## 1536. SHRI PARTHIBAN S.R.:

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

- (a)         whether the Government has offered/is planning to offer incentives to the new foreign companies to set up factories in the country in the wake of COVID-19 pandemic;
- (b)         if so, the details thereof along with the aims and objectives thereto; and
- (c)         the time by when the said decision is likely to be implemented/come into force?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्रर(श्रर सोमप्रकाश) (SHRI SOM PARKASH)

- (a) to (c): The Government of India is making continuous efforts under Investment  Facilitation  for  implementation  of  Make  in  India  action plans  to  identify  potential  investors.  Support  is  being  provided  to Indian Missions abroad and State Governments for organising events, summits, road-shows  and  other promotional activities to attract investment in the country under the Make in India banner. Investment Outreach activities  are  being  carried  out  for  enhancing  International co-operation for promoting FDI and improve Ease of Doing Business in the country.

Recently,  in  addition  to  ongoing  schemes,  Government  has  taken various steps to boost investments in India. These include the National Infrastructure  Pipeline,  reduction  in  Corporate  Tax,  easing  liquidity problems  of  NBFCs  and  Banks,  trade  policy  measures  to  boost domestic  manufacturing.  Government  of  India  has  also  promoted domestic manufacturing of goods through public procurement orders, Phased  Manufacturing  Programme  (PMP),  Schemes  for  Production

Linked Incentives of various Ministries.

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 has been announced in Union Budget 2021-22 for PLI schemes for 13 key sectors for a period of 5 years starting from fiscal year (FY) 2021- 22. These 13 sectors  includes already existing 3 sectors  named  (i)  Mobile  Manufacturing  and  Specified  Electronic Components, (ii) Critical Key Starting materials/Drug Intermediaries & Active  Pharmaceutical  Ingredients,  and  (iii)  Manufacturing  of  Medical Devices  and  10  new  key  sectors  which  have  been  approved  by  the Union Cabinet recently in November 2020.  These 10 key sectors are: (i) Automobiles and Auto Components, (ii) Pharmaceuticals Drugs, (iii) Specialty Steel, (iv) Telecom & Networking Products, (v) Electronic/Technology  Products,  (vi)  White  Goods  (ACs  and  LEDs), (vii) Food Products, (viii) Textile Products: MMF segment and technical textiles,  (ix)  High  efficiency  solar  PV  modules,  and  (x)  Advanced Chemistry Cell (ACC) Battery. The  PLI  schemes  will  be  implemented  by  the  concerned  Ministries/ Departments and will be within the overall financial limits prescribed. Further, with a view to support, facilitate and provide investor friendly ecosystem to investors investing in  India, the  Union  Cabinet  on  03rd June,  2020  has  approved  constitution  of  an  Empowered  Group  of Secretaries (EGoS), and also Project Development Cells (PDCs) in all in coordination between the Central Government and State Governments, and thereby grow the pipeline of investible projects in India to increase concerned Ministries/ Departments to fast-track investments domestic investments and FDI inflow.

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