Lok Sabha Question No. 300 (STARRED), answered on 2023-08-09
Subject: Industrial Activity in States
Ministry: COMMERCE AND INDUSTRY
Asked by: Aparajita Sarangi

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

## LOK SABHA

## STARRED QUESTION NO. 300. TO BE ANSWERED ON WEDNESDAY, THE 09 TH  AUGUST, 2023.

## INDUSTRIAL ACTIVITY IN STATES

- *300.  SHRIMATI APARAJITA SARANGI:

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

- (a) the details of steps taken by the States to increase investments and attract more industrial activities;
- (b) the details of safeguards taken to reduce the sluggish commercial movement;
- (c) whether MSMEs are very crucial in increasing the employment levels and if so, the details thereof; and
- (d) the steps taken/proposed to be taken to increase commercial activities in the States?

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

- A statement is laid on the Table of the House.
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## (a) to (d):

## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO. 300 FOR ANSWER ON 09.08.2023.

- (a) & (b): Industry  is  primarily  a  State  subject.  The  Central  Government  comes  out  with several initiatives and  policies to promote industrialization in various parts of the country from time to time. Government of India also provides a framework of reforms for improving business environment across all the States.

To  increase  investments,  multiple  activities  have  been  undertaken  by  the  State Governments including Investment promotion events, Investor meets to showcase their  potential  and  infrastructure  development  and  policies  to  enhance  industrial activities. Additionally, states focus on improving ease of doing business rankings by  simplifying  processes  and  reducing  red  tape.  To  create  Investor-friendly environments and attract businesses across various sectors, states offer various incentives,  sector-specific  policies,  and  support  for  startups  and  MSMEs.  States have also  created  separate  entities  to  increase  industrialization,  earmarked  land for industrial use and set up investor facilitation cells.

A part  from  the  steps  initiated  by  States,  the  central  government  had  launched Make in India initiative,  a  flagship  program  of  central  government  on  September 25, 2014, to facilitate investment, foster innovation, building best in class infrastructure, and making India a hub for manufacturing, design and innovation. The development of a robust manufacturing sector continues to be a key priority of the Indian Government. Since its launch, Make in India initiative has made significant achievements and presently focuses on 27 sectors under Make in India 2.0.  The activities under the Make in India initiative are being undertaken by              several Central Government  Ministries/  Departments  and  various  State  Governments.  Ministries formulate action plans, programs, schemes and policies for the sectors being dealt by them, while States also have their own Schemes for attracting investments. Due to the Make in India Initiative, FDI equity inflow in the manufacturing sector between 2014-2022 has increased by 57% over these previous 8 years.

Further, Government  has  taken  a  series  of  policy  initiatives/measures  and safeguards to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth. These includes Aatmanirbhar packages, introduction of Production Linked Incentive (PLI) Scheme in fourteen (14) sectors, investment opportunities under National Infrastructure Pipeline (NIP) and National Monetisation  Pipeline  (NMP),  India  Industrial  Land  Bank  (IILB),  Industrial  Park Rating System (IPRS), soft launch of the National Single Window System (NSWS), 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 Government of India. All the above initiatives/schemes are being implemented  across  various  Ministries/Departments  of  Central  Government  and State Governments.

- (c) & (d): The  Central  Government  supplements  the  efforts  of  the  State/UT  Governments through various schemes, programs and policy initiatives for overall development and promotion of Micro, Small and Medium Enterprises (MSMEs) in the country. The Ministry of Micro, Small and Medium Enterprises implements various schemes for the  growth  and  development  of  MSME  sector  in  the  country  in  areas  of  credit support,  new  enterprise  development,  formalization,  technological  assistance, infrastructure development, skill development and training and market assistance to MSMEs. The schemes/programs inter alia include Prime Minister's Employment

Generation  Program  (PMEGP),  Credit  Guarantee  Scheme  for  Micro  and  Small Enterprises (CGTMSE), Micro and Small Enterprises-Cluster Development Program (MSE-CDP), Entrepreneurship Skill Development Program (ESDP), Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

To increase business environment & competitiveness and reduce logistic costs in the country, the central government has launched PM Gati Shakti National Master Plan (NMP), a GIS based platform with portals of various Ministries/Departments of Government on 13 th     October, 2021. It is a transformative approach to facilitate databased  decisions  related  to  integrated  planning  of  multi-modal  infrastructure. Empowered  Group  of  Secretaries  (EGoS)  and  Network  Planning  Group  (NPG) have  been  created  as  institutional  arrangement.   The National  Logistics  Policy (NLP) was launched on 17 th     September 2022 by Hon'ble PM to drive economic growth  and  business  competitiveness  of  the  country  through  an  integrated, seamless, efficient, reliable, green, sustainable and cost-effective logistics network by leveraging best in class technology, processes, skilled manpower and improve performance. Broad targets of the National Logistics Policy are to (i) Reduce cost of logistics in India to be comparable to global benchmarks by 2030; (ii) improve the  Logistics  Performance  Index  Ranking-  endeavor  is  to  be  among  top 25 countries by 2030; and (iii) create data driven decision support mechanism for an efficient logistics ecosystem.

Further, to increase industrial activities, DPIIT coordinates with Ministries/Departments and States/UTs for initiatives to reduce compliance burden on citizen and business activities. The objective of this exercise is to improve Ease of Doing Business and Ease of Living by Simplifying, Rationalizing, Digitizing and Decriminalizing  Government  to  Business  and  Citizen  Interface  across  all  the States/UTs. In order to have a continuous evaluation framework, DPIIT initiated a dynamic  reform  exercise  called  Business  Reforms  Action  Plan  (BRAP)  for assessment of business environment in the States/Union Territories (UTs). Under BRAP, States and UTs are assessed on the basis of implementation of designated reform parameters contained in the Action Plan. BRAP covers both the Businesscentric and Citizen-centric reforms spread across various reform areas. Some of the reform areas are Investment Enablers, Access to Information and Transparency,  Online  Single  Window  System,  Land  Allotment, Construction Permits Enablers, Labour Regulation Enablers, Environment Registration Enablers, Inspection  Enablers,  Obtaining  Utility  Permits,  Contract  Enforcement,  Citizencentric Certificates, Public Distribution System, Healthcare, etc.

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