Lok Sabha Question No. 38 (STARRED), answered on 2025-07-22
Subject: Promotion of Economic Nationalism
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Mahesh Kashyap, Shri Dineshbhai Makwana

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

## STARRED QUESTION NO. 38. TO BE ANSWERED ON TUESDAY, THE 22 ND  JULY, 2025.

## PROMOTION OF ECONOMIC NATIONALISM

## *38. SHRI DINESHBHAI MAKWANA: SHRI MAHESH KASHYAP:

- Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) the steps taken by the Government to promote economic nationalism through strengthening of domestic supply chains; (b) whether  the  Government  has  adopted  any  policy  measures  to  incentivize industries to prefer domestic suppliers over marginally cheaper imports; and (c) if so, the details thereof?

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

- (a) to (c): A Statement is laid on the Table of the House.
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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (c) OF LOK SABHA STARRED QUESTION DY. NO. 38 FOR ANSWER ON 22 ND  JULY 2025.

- (a): The Government has taken Several initiatives to strengthen domestic supply chains such as:
- i. The PM GatiShakti National Master Plan (NMP) platform which aims at enhancing  industrial  productivity  and  helping  the  country  to  reduce logistics  cost,  cut  down  project  delays  and  improve  supply  chain efficiency through multi-modal connectivity across highways, railways, ports, airports, logistics infrastructure, and inland waterways.
- ii. The National Logistics Policy 2022 (NLP) aims to create a cost-efficient, resilient,  and  sustainable  logistics  ecosystem.    Focus  areas  in  the National Logistics Policy include the Sectoral Plan for Efficient Logistics (SPEL) for major sectors of the economy like Coal, Cement, Fertilizer, Steel,  Pharma  etc.  examining  existing  supply  chain  networks  and promoting multi-modal transport, digitalization and automation.
- iii. Govt of India is developing the National Industrial Corridor Development  Programme,  intended  to  create  greenfield  industrial smart cities/clusters of global standards. These industrial corridors are designated areas along major transportation routes, such as Dedicated Freight Corridors (DFCs), Expressways, and National Highways, where new industrial smart cities & manufacturing clusters are planned within a range of 100-200 kms on either side of these routes.

The industrial  smart  cities/clusters  are  built  'ahead  of  demand'  with 'plug-n-play' infrastructure & ICT enabled utilities, walk to work culture facilitating manufacturing investments, boost the supply chain resilience, and reduce the average logistics cost in India.

- iv. An  E-Handbook  on  Warehousing  Standards  has  been  launched recently to promote optimization, interoperability, modal-shift, providing guidelines and best practices for optimal warehouse space utilization. The  warehouse  standards  prescribed  are  primarily  governing  the physical infrastructure of the warehouses including health and sustainability  standards.  The  handbook  will  serve  as  a  guide  for infrastructure improvement, achieving efficiency, cost reduction, attracting investment, adoption of newer technologies and global best practices.
- v. The digital platforms such as PM GatiShakti National Master Plan and Unified Logistics Interface Platform (ULIP) have facilitated data-driven decision-making. ULIP is enabling the industry players to get secure access  to  the  data  related  to  logistics  and  resources  available  with various  Ministries,  strengthening  existing  supply  chain  networks  for both domestic and export driven industries.
3. (b) & (c): Various  measures  have  been  taken  by  the  Government  to  incentivize  the industries such as:
- i. Production  Linked  Incentive  (PLI),  Scheme  has  led  to  a  significant increase in production, employment generation, economic growth and exports  in  the  country.  Launched  with  the  objective  of  making  India 'Atmanirbhar' is built on the foundation of 14 sectors with an incentive outlay  of  ₹  1.97  lakh  crore  (about  US$  26  billion)  to  strengthen production capabilities and help create global champions.

Actual investment of Rs. 1.76 lakh crore have been realized till March 2025 across 14 sectors, which has resulted in incremental production/sales of over Rs. 16.5 lakh crore and employment generation of over 12 lakhs (direct and indirect). The impact of PLI Schemes has been significant across various sectors in India. These schemes have incentivized domestic manufacturing, leading to increased production, job creation and a boost in exports.

PLI Scheme has encouraged major smartphone companies shifting its production to India. As a result, India has become a major mobile phone manufacturing country. The production of mobiles in value terms has increased  by  around  146%  from  INR  2,13,773  Cr  in  2020-21  to  INR 5,25,000  crore  in  2024-25  as  per  industry  association  and  DGCIS. During the same period, exports of mobile phones in value terms has increased by around 775% from INR 22,870 crore in 2020-21 to INR 2,00,000 crore in 2024-25.

Due to the PLI Scheme, there has been a significant reduction in imports of  raw  materials in  the  Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G, and transfer of technology has happened in manufacturing of Medical Devices such as (CT scan, MRI etc.).  Under the PLI Scheme for medical devices, 21 projects have started manufacturing of 54 unique medical devices,  which  include  high  end  devices  such  as  Linear  Accelerator (LINAC), MRI, CT-Scan, Heart Valve, Stent, Dialyzer Machine, C-Arm, Cath Lab, Mammograph, MRI Coils, etc.

Cumulative incentive amount of Rs. 21,534 crore have been disbursed as on 24.06.2025 under PLI Scheme for 12 sectors, namely Large Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices,  Pharmaceuticals,  Telecom  &  Networking  Products,  Food Processing,  White  Goods,  Drones  &  Drone  Components,  Specialty Steel, Textile products and Automobiles & Auto components.

The  Government  approved  the  Production  Linked  Incentive  (PLI) Scheme for Automobile and Auto Components Industry in India (PLIAuto) in September 2021 which was launched to enhance the country's manufacturing  capabilities  for  advanced  automotive  products.  The Scheme proposes financial  incentives  for  19  categories  of  Advanced

Automotive  Technology  (AAT)  vehicles  and  103  categories  of  AAT components to boost domestic manufacturing of Advanced Automotive Technology products and attract investments in the automotive manufacturing value chain.

The  PLI  Scheme  for  White  Goods  is  aimed  at  developing  a  robust component ecosystem for the Air Conditioners and LED Lights industry in India, with the goal of making the country an integral part of global supply chains. A unique feature of the scheme is that it incentivizes only the  manufacturing  of  components  and  sub-assemblies,  not  finished products. Following its launch, India has begun local production of key components  such  as  compressors,  copper  tubes,  heat  exchangers, motors, and control assemblies for air conditioners, as well as LED chip packaging, drivers, engines, light management systems, and metallized films  for  capacitors  in  the  LED  segment.  This  shift  is  significantly reducing import dependency and strengthening domestic manufacturing capabilities.

- ii. Make in India initiative was launched in September 2014 to facilitate investment,  foster  innovation,  build  best  in  class  infrastructure  and make India a hub of manufacturing, design, and innovation. Presently, Make in India 2.0 focuses on 27 sectors implemented across various ministries/departments and state governments.

Government  has  taken  a  series  of  policy  initiatives  that  include  the Atmanirbhar Bharat packages, investment opportunities under National Infrastructure Pipeline (NIP) and National Monetization Pipeline (NMP), India Industrial Land Bank (IILB), Industrial Park Rating System (IPRS), soft  launch  of  the  National  Single  Window  System  (NSWS),  etc.  to promote manufacturing. 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.

The Government has also approved 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with total project cost of ₹28,602 crore (incl. land cost) to facilitate manufacturing investments into the country.

- iii. India has signed the Supply Chain Resilience Agreement (Pillar-II) in November  2023  under  the  Indo-Pacific  Economic  Framework  for Prosperity (IPEF), a 14 member plurilateral grouping in the region. The Agreement  seeks  to  strengthen  supply  chain  crucial  for  national security and economic stability.
- iv. India is signing and negotiating bilateral Free Trade Agreements (FTAs) aimed at promoting economic trade & economic interest of the country. India has signed 14 FTAs and 6 PTAs (Preferential trade agreements)

with its trading partners. These trade agreements have contributed to enhance market access, reduce tariff and non-tariff barriers, strengthen strategic partnerships, and support domestic industry through balanced trade  facilitation.  Collectively,  these  FTAs  reflect  a  strategic  shift towards  high-quality,  comprehensive  trade  agreements  designed  to support India's domestic manufacturing, services exports, and integration into resilient global value chains

- v. Department is also issuing quality control orders (QCOs) to mandate minimum  quality  standards  for  the  imported  items.This  helps  in mitigating the issue of cheap imports and dumping. Minimum Import Price (MIP) regulation is also implemented to tackle the issue of cheap imports and to protect domestic manufacturing.
- vi. Major  focus  of  the  department  is  ensuring  ease  of  doing  business (EoDB) in the country. This is done through multiple inititiatives such as simplifying and streamlining business regulations including the Business Reform Action Plan (BRAP), the B-Ready assessment, Jan Vishwas  and  Reducing  Compliance  Burden  on  Businesses  and Citizens and measurement of Cost of Regulation.

Under, the Regulatory Compliance Burden (RCB) initiative the department works with various Ministries, Departments, and States/UTs to reduce the compliance burden on citizens and businesses. The goal is to enhance Ease of Doing Business and Ease of Living through four key  strategies:  Simplification  of  procedures,  Rationalization  of  laws, Digitization of processes, and Decriminalization of minor offences.

To enhance ease of doing business, the Government, through the Jan Vishwas (Amendment of Provisions) Act, 2023, has decriminalized 183 provisions across 42 Central Acts administered by 19 Ministries/ Departments. Building on this reform, the Hon'ble Finance Minister has announced  the  Jan  Vishwas  2.0  initiative,  under  which  DPIIT  has undertaken an analysis of criminal provisions (including both major and minor offences) across Acts under 39 Ministries/Departments.

- vii. Government of India through its line Ministries / Regulators, so far, a total of 190 Quality Control Order's covering 773 products have been notified for compulsory certification of BIS by various regulators / line Ministries of Government of India, to enhance quality of goods imported into India and to increase quality consciousness in the Country.

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