Lok Sabha Question No. 2902 (UNSTARRED), answered on 2023-12-20
Subject: India's Economy
Ministry: COMMERCE AND INDUSTRY
Asked by: Pritam Gopinath Munde, Rahul Ramesh Shewale, Chandra Sekhar Sahu

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

## LOK SABHA

UNSTARRED QUESTION NO. 2902.

TO BE ANSWERED ON WEDNESDAY, THE 20 TH  DECEMBER, 2023.

## INDIA'S ECONOMY

## 2902. DR. PRITAM GOPINATHRAO MUNDE: SHRI RAHUL RAMESH SHEWALE:

SHRI CHANDRA SEKHAR SAHU:

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

- (a) whether  the  Union  Government  has  requested  the  business  community  to contribute substantially to bring India's economy to third position in the world;
- (b) if so, the facts thereof along with the response of the business community thereon;
- (c) whether Bharat is moving on a very different path today to strengthen the country's economy;
- (d) if so, the details thereof;
- (e) whether there is an urgent need to take steps to curb rising inflation in the country; and
- (f) if  so,  the  steps taken by the Union Government in this regard and the success achieved so far therefrom?

## 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) & (b): India is currently the fifth largest economy in the world and aspires to be third largest. The Government has taken a number of initiatives to boost confidence of the business community including increased ease of doing business while creating an ecosystem to enhanced industrialisation and make India globally competitive.

As part of enhanced Ease of Doing Business in the country, systematic and targeted efforts are being made to reduce the number of processes, reduce average  time  taken,  rationalize  costs  and  make  it  easier  to  do business in India.

Initiatives like simplification of regulations, opening the strategic sectors for the  private  players  and  rationalisation  of  labour  laws  have  boosted confidence of the business sector. Further, direct tax measures such as the restructuring of the corporate tax rates, reduced tax litigation and removal of  tax  uncertainties  have  considerably  reduced  the  compliance  burden. Introduction of Insolvency and Bankruptcy Code of India (IBC) in 2016 to resolve insolvency focusing on maximization of value of assets by aiming at reorganization rather than liquidation  of the Corporate Debtor. Initiatives like Introduction of SPICe+ and AGILE PRO-S form by Ministry of Corporate Affairs (MCA) and digitization of land records have been top priorities to bring efficiency and transparency.

The  reforms  taken  by  Government  have  resulted  in  increased  Foreign Direct        Investment (FDI) inflows in the country. FDI inflows in India stood at US$ 45.15 billion in 2014-15 and have continuously increased since then, and  India registered its highest ever annual FDI inflow of US$ 84.84 billion in the financial year 2021-22.

- (c) & (d): To strengthen the economy several major initiatives have been launched by the Government of India. 'Make in India' is one of the key initiatives which was  launched  on  25th  September,  2014  to  facilitate  investment,  foster innovation,  build  best  in  class  infrastructure,  and  make  India  a  hub  for manufacturing, design, and innovation. It is one of the unique 'Vocal for Local' initiatives that promoted India's manufacturing domain to the world.

The activities under the Make in India initiative are also being undertaken by   several Central Government Ministries/ Departments and various State Governments.  Ministries  formulate  action  plans,  programmes,  schemes and policies for the sectors being dealt by them, while States also have their own Schemes for attracting investments.

In  addition  to  ongoing  schemes  of  various  Departments  and  Ministries, Government has  taken  various  steps  to  boost  domestic  and  foreign investments in India. These include the introduction of Goods and Services Tax,  reduction  in  corporate  tax,  improving  ease  of  doing  business,  FDI policy reforms, measures for reduction in compliance burden, measures to boost domestic manufacturing through public    procurement orders, Phased Manufacturing Programme (PMP) and QCOs (Quality Control Orders), to name a few.

Production  Linked  Incentive  (PLI)  Schemes  for  14  key  sectors  (with  an incentive  outlay  of  Rs.  1.97  lakh  crore)  are  under  implementation  to enhance India's manufacturing capabilities and exports. With announcement  of  PLI  Schemes,  significant  improvement  in  production, skills, employment, economic growth and exports is expected over the next five  years  and  more.  As  of  now,  746  applications  have  been  approved across the country in 14 sectors out of which 176 applicants are from MSME sector.

- (e) & (f): Due to the anticipated  slowdown in  advanced economies, inflation risks coming from global commodity prices are likely  to  be  lower  in  Financial Year  2024-25  than  in  Financial  Year  2023-24.  Prompt  and  adequate measures by the Government  of  India  and  the  Reserve  Bank  of  India (RBI)  have  led  to  inflation   being largely under control.

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