Lok Sabha Question No. 80 (STARRED), answered on 2024-02-07
Subject: Promotion of Investment and Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: Rita Bahuguna Joshi, Unmesh Bhaiyyasaheb Patil

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

STARRED QUESTION NO. 80.

TO BE ANSWERED ON WEDNESDAY, THE 07 TH  FEBRUARY, 2024.

## PROMOTION OF INVESTMENT AND TRADE

- *80. PROF. RITA BAHUGUNA JOSHI:

## SHRI UNMESH BHAIYYASAHEB PATIL:

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

- (a) the  details  of  steps  taken  by  the  Government  to  increase  investments  and attract more industrial activities;
- (b) the steps taken by the Government to give impetus to FDI inflows;
- (c) the details of safeguards taken to reduce the sluggish commercial movement and increase commercial activities in the States, State-wise;
- (d) the details of export promotion initiatives taken by the Government to increase the export;
- (e) the measures being taken by the Ministry to develop its large domestic market to the optimum level and expand its reach across the world; and
- (f) the details of various ongoing initiatives of the Government for e-Commerce Export Promotion?

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

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

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## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 80 FOR ANSWER ON 07 TH  FEBRUARY, 2024.

- (a) & (b): Industry is primarily a State subject. The Central Government comes out with  several  initiatives  and  policies  to  increase  investments  and  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.

The Government initiatives are significant  to  increase  investments  and promote economic growth besides converting the disruption caused by COVID-19 into an opportunity for growth and investment. These includes Atmanirbhar 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 implemented across various Ministries/Departments, Central Government, State Governments.

In order to give impetus to 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 (without government approval). Almost 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. Further, to ensure that India remains an attractive and investor friendly destination, the Government reviews FDI  policy on an  ongoing  basis  and  makes  changes  from  time  to  time  after  having intensive consultations with stakeholders including apex industry chambers, Associations, representatives of industries/groups and other organizations taking into consideration their views/comments. FDI policy provisions  have  been progressively  liberalized  and  simplified  across various  sectors  such  as  Pension,  Other  Financial  Services,  Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Power  Exchanges, e-commerce  activities,  Coal  Mining,  Contract  Manufacturing,  Digital Media, Civil Aviation etc. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas and Telecom. The total FDI inflows received in the country from FY 2014-15 to 2022-23 is US$ 596 Billion as compared to US$ 304 Billion received during FY 2004-05 to FY 2013-14.

- (c): To further improve Ease of Doing Business ecosystem in the country, the Government 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,  the  Government 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 Business-centric 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, Citizen- centric Certificates, Public Distribution System, Healthcare, etc.

- (d): The  Government  encourages  Indian  exporters  to  participate  in  the exhibitions and provides grant-in-aid under Market Access Initiative (MAI) schemes, wherein, regular bilateral institutional mechanism meetings are held  with  the  Export  Promotion  Councils  (EPCs)  and  Indian  Missions abroad  to  explore  new  opportunities,  identify  and  resolve  trade  issues thereby increasing Indian exports.
- (e): One  of  the  measures  taken  up  by  the  Ministry  to  develop  domestic manufacturing and markets and keeping in view India's vision of becoming 'Atmanirbhar',  Production  Linked  Incentive  (PLI)  Schemes  for  14  key sectors have been announced with an outlay of Rs. 1.97 lakh crore (over US$26 billion) to enhance India's Manufacturing capabilities and Exports.

The 14 sectors are: (i) Mobile Manufacturing and Specified Electronic Components,  (ii)  Critical  Key  Starting  Materials/Drug  Intermediaries  & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices (iv)  Automobiles  and Auto Components, (v) Pharmaceuticals Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods  (ACs  and  LEDs),  (x) Food  Products,  (xi) Textile  Products:  MMF  segment  and  technical textiles, (xii) High efficiency solar PV modules, (xiii) Advanced Chemistry Cell  (ACC)  Battery,  and  (xiv)  Drones  and  Drone  Components.  The purpose of the PLI Schemes is to attract investments in key sectors and cutting- edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.

These schemes have the potential of significantly boosting production, employment, increase manufacturing activities and contribute to economic growth over the next five years or so thereby having potential to change the manufacturing ecosystem in the country and has already started to reach across the world.

- (f): A chapter has been introduced in the new Foreign Trade Policy (FTP) 2023 for promoting Cross border trade in the digital economy. FTP 2023 has a stated objective to enable cross-border E-Commerce for artisans, weavers, craftsmen,  and MSMEs. Key focus is on raising awareness, enhancing skills, and sharing knowledge with exporters and entrepreneurs.

The Government  has notified Monthly workshops on Cross-border ECommerce  to  cover  aspects  related  to  cross-border  logistics,  Postal  and Customs compliances and cross-border payment mechanisms. E-Commerce Exports Handbook for MSMEs and new Export Entrepreneurs navigating the E-Commerce  Export  landscape  launched  in  English,  Hindi,  Gujarati,  and Kannada.  Government  works  with  the  Regional  Postal  Offices  and  MSME Development and Facilitation Offices (MSME-DFOs) to facilitate new entrepreneurs for promoting E-Commerce Exports.

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