Lok Sabha Question No. 1643 (UNSTARRED), answered on 2023-12-13
Subject: Enhancing Industrial activities in States
Ministry: COMMERCE AND INDUSTRY
Asked by: Krishna Pal Singh Yadav, M.K. Vishnu Prasad, Satyadev Pachauri, Chandra Prakash Joshi, L.S. Tejasvi Surya, T.R.V.S. Ramesh, Pushpendra Singh Chandel, Manoj Kishorbhai Kotak, Heena Vijaykumar Gavit, Sujay Radhakrishna Vikhepatil, Rita Bahuguna Joshi, Vinod Chavda, Unmesh Bhaiyyasaheb Patil, Basanta Kumar Panda, Shrikant Eknath Shinde, Ramesh Chander Kaushik

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1643. TO BE ANSWERED ON WEDNESDAY, THE 13 TH  DECEMBER, 2023.

## ENHANCING INDUSTRIAL ACTIVITIES IN STATES

## 1643.  DR. KRISHNA PAL SINGH YADAV:

DR. VISHNU PRASAD M.K.:

SHRI SATYADEV PACHAURI:

SHRI CHANDRA PRAKASH JOSHI:

SHRI L.S. TEJASVI SURYA:

SHRI T.R.V.S. RAMESH:

SHRI KUNWAR PUSHPENDRA SINGH CHANDEL:

SHRI MANOJ KOTAK:

DR. HEENA VIJAYKUMAR GAVIT:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

PROF. RITA BAHUGUNA JOSHI:

SHRI VINOD L. CHAVDA:

SHRI UNMESH BHAIYYASAHEB PATIL:

SHRI BASANTA KUMAR PANDA:

DR. SHRIKANT EKNATH SHINDE:

SHRI RAMESH CHANDER KAUSHIK:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the  details  of  the  steps  taken  by  the  Government  to  boost  investments  and attract more industrial activities;
- (b) the  measures  implemented  by  the  Government  to  stimulate  Foreign  Direct Investment (FDI) inflows;
- (c) the  safeguards  put  in  place  to  mitigate  sluggish  commercial  movement  and enhance  commercial  activities  in  the  States  particularly  in  Rajasthan  and Haryana;
- (d) the steps taken by the Government to enhance the Ease of Doing Business in India and the resulting rankings in Ease of Doing Business;
- (e) the role of the National Single Window System (NSWS) portal, created by the Department for Promotion of Industry and Internal Trade (DPIIT), in facilitating investor-related clearances with transparency and accountability; and
- (f) whether MSMEs are very crucial in increasing the employment levels and if so, the details thereof?

## 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): Make in India initiative was launched 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 had significant achievements and presently focuses on 27 sectors (Annexure  I) under  Make  in  India  2.0,  which  is  implemented  across  various Ministries/Departments of Central Government and State Governments. 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. Further, keeping in view India's vision of becoming 'Atmanirbhar', PLI Schemes for 14 key sectors ( Annexure 2 ) have been announced with an outlay of              Rs.  1.97  lakh  crore  to  enhance  India's  Manufacturing        capabilities and  Exports.  With  the  announcement  of  PLI  Schemes,  significant  production, employment, and economic growth is expected over the next   5 years and more.
- (b): To  promote  Foreign  Direct  Investment (FDI),  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.
- (c): 'Industry' is primarily a State subject. The Union Government supplements efforts of all  States/UTs  through  various  measures  to  enhance  commercial  activity  in  the country.  The  Government  has  taken  a  series  of  policy  initiatives  to  improve  the economic situation. These include Atmanirbhar packages, 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), liberalization of FDI policy, 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 and State Governments, including Rajasthan and Haryana. Further, PLI   Schemes for 14 Sectors (Annexure II) for core competence and cutting edge technology have been notified by the concerned Ministries/ Departments after  approval of the Union Cabinet. These Schemes are in their  various  stages  of  implementation.  The  PLI  scheme  is  expected  to  have  a cascading effect on the country's MSME ecosystem. The anchor units that will be built in every sector are likely to set a new supplier/vendor base in the entire value chain. Most of these ancillary units are expected to be built in the MSME sector.

- (d): Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT)  is  the  Nodal Department for  coordinating  the  initiatives  under  Ease  of  Doing  Business  (EoDB), which are aimed at creating a conducive business environment in India. Series of steps  have  been  taken  to  enhance  EoDB  in  India  by  Ministries/Departments  and States/Union Territories (UTs). These include:
- (i)  Reducing  Compliance  Burden  on  Businesses  and  Citizens  by  Simplifying, Rationalizing, Digitizing and Decriminalizing Government to Business and Citizen Interfaces.
- (ii) Assessment of States/UTs on the basis of implementation of designated reform parameters under annual exercise called Business Reform Action Plan (BRAP). 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, Sector-specific reforms, etc.

India ranks 63 rd  in the last World Bank's Doing Business Report (DBR), 2020 published in October, 2019. India's rank in the DBR improved from 142 nd  in 2014 to 63 rd  in 2019, registering a jump of 79 ranks in a span of 5 years.

- (e): National Single Window System (NSWS) was soft-launched on 22 nd  September 2021. It functions as a unified platform for applying for all G2B clearances from various Ministries/Departments. The NSWS Portal has the following key modules and functionalities to improve transparency and ease of doing business in India:
-  Know Your Approval (KYA) : An intelligent questionnaire for businesses to  identify  relevant  business  approvals  across  32  Central  Departments and 32 States/UTs. The KYA Module of NSWS provides a comprehensive list of approvals necessary for specific business cases.
-  Unified Application System : Common Information, including documents,  is  collected  once  and  auto-populated  across  forms  and platforms.
-  Single User Dashboard to track Approvals Status across Ministries and States making it easier for businesses to track the status of  their applications.
-  Dashboard  and  reporting  capabilities to  monitor  and  track  usage, application status, etc. by Senior Govt. Officials.
-  Online Payment support for applications : PayGov (Meity), BharatKosh,  SBI  Payment  Gateway  are  integrated  into  the  platform providing a seamless payment experience.
-  Digital  Signature: NSWS  enables  businesses  as  well  as  licensing officers to digitally sign their documents to facilitate doing business along with streamlined processing of applications.
-  Centralized Grievance Redressal Mechanism: All 'customer support' has  been  centralized  across  32  Central  Ministries  through  the  NSWS helpline. Businesses can seek technical support, license information, and fee related details.

The  culmination  of  all  these  factors  has  provided  a  seamless  experience  to investors in terms of reducing time effort, and cost.

- (f): Yes Sir, MSMEs play a crucial role in increasing the employment levels. The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and

dynamic sector of the Indian economy. It contributes significantly to the economic and social development of the country by fostering entrepreneurship and  generating  large  scale  employment  opportunities  at  comparatively  lower capital cost, next only to agriculture. As per the National Sample Survey (NSS) 73rd round, MSME sector has created 11.10 crore jobs (including 360.41 lakh in Manufacturing, 387.18 lakh in Trade and 362.82 lakh in Other Services) in the rural and the urban areas across the country.

The Ministry of MSME has been implementing the Prime Minister's Employment Generation Programme  (PMEGP),  through Khadi and Village Industries Commission  (KVIC),  which  aims  at  providing  employment  opportunities  to traditional  artisans/  rural  and  urban  unemployed  youth  at  their  doorstep  by assisting entrepreneurs across the country in setting up of new units in the nonfarm sector. Since 2008-09 till 30.11.2023, about 9.16 lakh micro enterprises have  been  assisted  across  the  country  thereby  providing  employment  to  an estimated 74.87 lakh persons.

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## ANNEXURE I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA USTARRED QUESTION NO. 1643 FOR ANSWER ON 13.12.2023.

## List of 27 Sectors under 'Make in India' programme is as below:

## Manufacturing Sectors:

- (i) Aerospace and Defence
- (ii) Automotive and Auto Components
- (iii) Pharmaceuticals and Medical Devices
- (iv) Bio-Technology
- (v) Capital Goods
- (vi) Textile and Apparels
- (vii) Chemicals and Petro-chemicals
- (viii) Electronics System Design and Manufacturing (ESDM)
- (ix) Leather & Footwear
- (x) Food Processing
- (xi) Gems and Jewellery
- (xii) Shipping
- (xiii) Railways
- (xiv) Construction
- (xv) New and Renewable Energy

## Service Sectors

- (i) Information Technology & Information Technology enabled Services (IT & ITeS)
- (ii) Tourism and Hospitality Services
- (iii) Medical Value Travel
- (iv) Transport and Logistics Services
- (v) Accounting and Finance Services
- (vi) Audio Visual Services
- (vii) Legal Services
- (viii) Communication Services
- (ix) Construction and Related Engineering Services
- (x) Environmental Services
- (xi) Financial Services
- (xii) Education Services

## ANNEXURE II

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (c)  OF  THE  LOK  SABHA USTARRED QUESTION NO. 1643 FOR ANSWER ON 13.12.2023.

The 14 key sectors where PLI scheme exists are:

1.  Mobile Manufacturing and Specified Electronic Components (Large Scale Electronics Manufacturing),
2.  Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients,
3.  Manufacturing of Medical Devices,
4.  Automobiles and Auto Components,
5.  Pharmaceuticals Drugs,
6.  Specialty Steel,
7.  Telecom & Networking Products,
8.  Electronic/ Technology Products (IT Hardware),
9.  White Goods (ACs and LEDs),
10.  Food Products,
11.  Textile Products: MMF segment and technical textiles,
12.  High efficiency solar PV modules,
13.  Advanced Chemistry Cell (ACC) Battery, and
14.  Drones and Drone Components.

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