Lok Sabha Question No. 1952 (UNSTARRED), answered on 2025-03-11
Subject: Inflow of FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Smt. Manju Sharma

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

## LOK SABHA

UNSTARRED QUESTION NO. 1952. TO BE ANSWERED ON TUESDAY, THE 11 TH  MARCH, 2025.

## INFLOW OF FDI

## 1952.  SMT. MANJU SHARMA:

Will the Minister of COMMERCE AND INDUSTRY

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of the steps taken by the Government to increase investment and attract more industrial activities;
- (b) the  steps  taken  by  the  Government  to  encourage  inflow  of  Foreign  Direct Investment (FDI);
- (c) the  details  of  safeguard  taken  to  accelerate  and  boost  the  slow  pace  of commercial activities in the States, State-wise; and
- (d) the details of export promotion  initiatives taken by the Government to boost exports?

## ANSWER

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

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) (SHRI JITIN PRASADA)

(a) to (c): The Government has taken several steps to boost investments and attract more industrial  activities  in  the  country.  The  Government  of  India,  through  the Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT)  and  other Central  Ministries/  Departments,  provides  an  enabling  eco-system  for  the overall  industrial  development  of  the  country  through  appropriate  policy interventions. In addition to on-going schemes of other Ministries/ Departments, this  Department  has  taken  various  steps  for  promotion  and  facilitation  of industries  across  States/UTs,  such as  Make  in  India,  Start-up  India,  PM GatiShakti, National Industrial Corridor Programme, Production Linked Incentive  (PLI)  Scheme,  promoting  Ease  of  Doing  Business  (EoDB)  and reducing compliance burden, National Single Window System (NSWS), India Industrial  Land  Bank,  Project  Monitoring  Group  (PMG),  liberalization  of  FDI policy,  Production  Linked  Incentive  (PLI)  Schemes,  Indian  Footwear  and Leather  Development  Programme  (IFLDP)  Scheme,  etc.  An  institutional mechanism  to  fast-track  investments  has  been  put  in  place,  in  the  form  of Project Development Cells (PDCs), in all concerned Ministries/ Departments of the Government of India. Subsequently the Cabinet Committee on Economic Affairs  recently  has  approved  12  new  project  proposals  under  the  National be pleased to state:

Industrial  Corridor  Development  Programme  (NICDP)  with  an  estimated investment of Rs. 28,602 crores. Spanning across 10 states and strategically planned  along  6  major  corridors,  these  projects  represent  a  significant  leap forward in India's quest to enhance its manufacturing capabilities and economic growth.

In  addition,  the  Government  has  implemented  various  measures  to  stimulate Foreign Direct Investment (FDI) inflows. The Government has put in place an investor-friendly policy, wherein  most  sectors except certain strategically important sectors, are open for 100% FDI under the automatic route. More than 90% of the FDI inflow is received under the automatic route. India continues to open up its economy to global investors by raising FDI limits, removing regulatory barriers,  developing  infrastructure  and  improving  business  environment.  For instance,  the  Union  Budget  2025  announced  for  the  further  increase  of  FDI sectoral cap for the insurance sector from 74% to 100%. This enhanced limit will be available for those companies, which invest the entire premium in India.  The Government always strives to attract more FDI by removing regulatory barriers, streamlining processes, developing infrastructure, bettering logistics and improving the business environment by enhancing the Ease of Doing Business (EoDB).

- (d): India's export ecosystem has become resilient and deeply integrated into the global economy which is strengthened by strategic policy measures, enhanced competitiveness, and broader market access. In order to promote exports, the Government  of  India  has  undertaken  several  initiatives  including  Assistance provided through several schemes to promote exports, namely, Trade Infrastructure  for  Export  Scheme  (TIES)  and  Market  Access  Initiatives  (MAI) Scheme. Further, the government has introduced the Remission of Duties and Taxes  on  Exported  Products  (RoDTEP)  Scheme  aimed  at  refunding  various embedded taxes  and  duties  on  exported  products.  Under  RoDTEP  scheme, anomalies in 432 tariff lines have been addressed and the corrected rates have been  implemented  with  effect  from  16.01.2023.  Additionally,  the  Districts  as Export  Hubs  initiative  launched  by  the  Government  has  helped  to  identify products  with  export potential in each district,  addressing  bottlenecks  for exporting  these  products  and  supporting  local  exporters/manufacturers  to generate employment in the districts. The Government recently launched the Trade Connect ePlatform on 11 September 2024, this serves as an information and  intermediation  platform  on  international  trade  bringing  together  Indian Missions  Abroad  and  officials  from  the  Department  of  Commerce  and  other organizations  to  provide  comprehensive  services  for  both  new  and  existing exporters.  Other  sector-specific  initiatives  are  placed  in  the Annexure .  By providing  support  to  crucial  export  sectors,  the  government  aims  to  not  only enhance their competitiveness but also create employment opportunities and contribute  to  overall  economic  growth,  aligning  with  the  vision  of  building  an Aatmanirbhar Bharat.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (d)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 1952 FOR ANSWER ON 11.03.2025.

Some of the sector-specific initiatives for promoting exports include :

1.  The  Diamond  Imprest  Authorization  (DIA)  Scheme  was  introduced  by  the Government of India on 21st of January 2025, aiming to enhance the global competitiveness of India's diamond sector. This scheme provides a streamlined  mechanism  for  duty-free  import  of  Natural  Cut  and  Polished Diamonds up to 25 cents (1/4 carat), thereby promoting value addition and boosting exports. The  Scheme  will be implemented with effect from 01.04.2025.
2.  The Rebate of State and Central Levies and Taxes (RoSCTL) Scheme aims to promote labour-oriented certain items of textiles sector export and has been implemented since 07.03.2019.
3.  In order to promote exports of value-added products, the Government notified Import duty exemption for the import of wet blue chrome tanned leather and notified inputs for leather garments, leather products and footwear exporters, under Import of Goods under Concessional Rates of Duty (IGCR) Scheme in Union Budget 2022-23. More leathers namely wet white leather, crust leather and finished leather and more inputs were notified under the aforesaid IGCR scheme in the Union Budget 2024-25.
4.  In the Union Budget announcement 2025-26, the Export duty on crust leather (hides  and  skins)  has  been  fully  exempted  (from  20%  to  0%)  to  facilitate exports by small tanners. The Basic Customs Duty (BCD) on Wet Blue leather has  also  been  fully  exempted  (from  10%  to  0%)  to  facilitate  imports for domestic  value  addition  and  employment.  The  cheaper  imports  will  allow Indian companies to become cost-competitive and help in gearing the industry for achieving the envisaged export targets.
5.  Under the Export Promotion Capital Goods Scheme (EPCG) of Foreign Trade Policy,  Customs duty exemption is provided for the import of capital goods for pre-production,  production  and  post-production,  subject  to  fulfilment  of export  obligation.  Capital  goods  imported  under  EPCG  Authorisation  for physical exports are also exempted from IGST and Compensation Cess.

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