Lok Sabha Question No. 2336 (UNSTARRED), answered on 2024-08-06
Subject: Promotion in Foreign Investment
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Jayanta Kumar Roy

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

## LOK SABHA

UNSTARRED QUESTION NO. 2336.

TO BE ANSWERED ON TUESDAY, THE 06 TH  AUGUST, 2024.

## PROMOTION IN FOREIGN INVESTMENT

## 2336.  DR. JAYANTA KUMAR ROY:

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

- (a) whether 'Invest India' which was launched by the Government with Federation of Indian Chambers of Commerce and Industry (FICCI) for promoting foreign investments in the country has achieved its objectives for which it was set up;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) the current shareholding pattern of invest India along with the details of projects which are being handled by invest India;
- (d) the details of schemes/programmes and their achievements so far in terms of Foreign Direct Investment (FDI) inflows, year and sector-wise;
- (e) whether the Government has any mechanism to monitor the implementation of programme and if so, the details thereof; and
- (f) the other steps taken by the Government to make the 'Invest India' programme more effective?

## 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) to (c) :   Invest India, was formed in 2009 under Section 25 of the Companies Act 1956  for  promotion  of  foreign  investment  with  49%  equity  of  the  then Department of Industrial Policy and Promotion, Ministry of Commerce and Industry and 51% shareholding by FICCI.

The purpose of setting up of Invest India, a National Investment Promotion and  Facilitation  Agency  is  to  act  as  a  first  point  of  reference  for  any Investor interested in India and provide information on issues, such as tax rates, skill availability and advantages that states have to offer, at a single point about all the states. It also undertakes promotional work and attract Investment especially by expanding global investor awareness beyond the metros.

Invest India facilitated the grounding of 27 projects in FY 2023-24 with an expected investment value and potential employment of ~ $1.45 billion and around 52,000, respectively, as reported by the companies. Invest India  resolved  4,864  inbound  investor  queries  related  to  Make  in India in FY 2023-24.

The  current  shareholding  pattern  of  Invest  India  is  51%  of  Industry Associations  (i.e.  17%  each  of  FICCI,  CII  &  NASSCOM)  and  49%  of Government  of  India.  As  on  date,  DPIIT  is  holding  36%  and  13% shareholding is with 26 State Governments (0.5% each State).

The  projects  being  handled  by  Invest India, inter-alia, include the following:-

- i.  Investor targeting &  facilitation -Domestic  &  International activities: Providing facilitation to prospective investors at central and state  level.  Other  activities  under  Investor  facilitation  are  :-  Focused Investor targeting & country sector outreach, Organizing CEO Forums and Joint Commission meetings, Support to Indian missions abroad for Market Entry Support Programme (MESP), Project Monitoring via PMG Invest India Cell, Investment Clearance Cell (National Single Window System),  Supporting  Industrial  Clusters  (via  Industrial  Information System  /Industrial  Park  Rating  System),  Investment  Facilitation  for North-East India, Monitoring of FDI activities via FDI Monitoring Cell, Monitoring and  developing a pipeline of Investible projects via Empowered  Group  of  Secretaries  and  Project  Development  Cells, Regional  ecosystem  development  via  One  District  One  Product, Supporting domestic investors via Domestic Investor Cell, and Listing of investible projects via India Investment Grid.
- ii. Investment  promotion  -  Amplification  &  outreach  activities: To sustain  and  enhance  the  momentum  towards  making  India  the preferred  Investment  destination  and  promote  'Brand  India'  and strategize amplification & outreach, Support Indian Missions abroad to Investment  Promotion,  Support  to  State  Government  &  Industry Associations in their Investment promotion activities.
- iii. Project management activities: Preparing  Industry/sectoral  reports and concept papers for Innovative projects to attract Investments by undertaking in-depth research and analysis of the Investment promotion ecosystem.

| (d) to (f):   | FDI Policy is an enabling policy which is uniformly applicable across the country. To attract more FDI, the Government has put in place an investor friendly FDI policy, wherein most of the sectors, except certain strategically important sectors, are open for100% FDI under the automatic route. 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.   |
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