Lok Sabha Question No. 2400 (UNSTARRED), answered on 2024-12-10
Subject: Setting up of New Industries
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri C N Annadurai, Shri Selvam G

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 2400.

TO BE ANSWERED ON TUESDAY, THE 10 TH  DECEMBER, 2024.

## SETTING UP OF NEW INDUSTRIES

## 2400.  SHRI SELVAM G:

## SHRI C N ANNADURAI:

Will the Minister of COMMERCE AND INDUSTRY

be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the details of new industries set up in the country during the last five years and the current year, State/UT-wise and sector-wise;
- (b) the  details  of  investment  attracted  for  setting  up  these  industries,  including foreign direct investment (FDI), year-wise;
- (c) whether the Government provides any incentives, subsidies, or tax benefits to encourage new industries, and if so, the details thereof;
- (d) the details of key policies and initiatives introduced by the Government to attract investment for setting up new industries;
- (e) the  manner  in  which  the  Government  leveraging  public-private  partnerships (PPPs) to facilitate the establishment of new industries;
- (f) whether  the  Government  consider  setting  up  industrial  hubs  or  Special Economic Zones (SEZs) in underserved regions to promote balanced regional development; and
- (g) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) & (b): The  Union  Government  provides  support  for  promotion  of  industrial activities across the country. Government of India, through 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. Industry is primarily the domain of State Governments. No database pertaining to setting up of new industries and their investments, is maintained by Department for Promotion of Industry and Internal Trade (DPIIT).

To attract more Foreign Direct Investment (FDI), the Government has put in  place  an  investor  friendly  FDI  policy,  wherein  most  sectors,  except certain strategically important sectors, are open for 100% FDI under the automatic route. Further, the FDI policy is reviewed on an ongoing basis, to ensure that India remains an attractive and investor friendly destination. The details of FDI inflows in the country as a whole during the last five years is as under:

|                  |       |       |   2021-22 |   2022-23 |   (in USD Billion) |
|------------------|-------|-------|-----------|-----------|--------------------|
| FDI Inflow Funds | 74.39 | 81.97 |     84.84 |     71.36 |              70.94 |

(P-Provisional)

- (c) & (d): The Government has taken various steps for promotion and facilitation of setting up of industries across States/UTs such as Make in India, Startup India,  PM  Gati  Shakti,  National  Infrastructure  Pipeline  (NIP),  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,  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 Government of India.
- (e): Government of India's 'Scheme for Financial Support to Public Private Partnership (PPP) in Infrastructure', towards the objective of promoting PPPs in various sectors, enables provision of catalytic grant assistance as Viability  Gap  Funding  (VGF)  for  making  infrastructure  projects financially viable. The list of sectors eligible for VGF under the scheme are Airports,  Seaports,  Health,  Telecommunication,  Oil  and  Gas  pipelines, among others.
- (f) & (g): The Government is implementing the National Industrial Corridor Development  Programme  which  is  aimed  at  providing  multi  modal connectivity with complete 'plug and play' infrastructure till the plot level along  with  building  resilient  and  sustainable  future  ready  cities.  The industrial  corridors  are  conceived  to  foster  global  manufacturing  and investment destination hubs in the greenfield smart cities with the 'best inclass' infrastructure. Major infrastructure works have been completed in 4 such  cities/townships,  namely,  Dholera  in  Gujarat,  Shendra  Bidkin  in Maharashtra, Greater Noida in Uttar Pradesh and Vikram Udyogpuri in Madhya Pradesh.

Special Economic Zones (SEZs) being set up under the SEZ Act, 2005 are  primarily  private  investment-driven  initiatives.  Central  Government has not set up any SEZ after the enactment of the SEZ Act, 2005.  Further, no budgetary support is provided by the Central Government for setting up any new SEZ beyond the fiscal benefits envisaged under the SEZ Act, 2005.

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