Lok Sabha Question No. 4099 (UNSTARRED), answered on 2025-03-25
Subject: Promotion of Foreign Investment
Ministry: COMMERCE AND INDUSTRY
Asked by: Smt. Lovely Anand

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

## LOK SABHA

UNSTARRED QUESTION NO. 4099.

TO BE ANSWERED ON TUESDAY, THE 25 TH  MARCH, 2025.

## PROMOTION OF FOREIGN INVESTMENT

## 4099.  SMT. LOVELY ANAND:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) the  details  of  steps  being  taken  by  the  Government  to  promote  foreign investment;
- (b) the details of various policies adopted to encourage domestic manufacturing industries;
- (c) the steps taken for implementation of the said policies; and
- (d) 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): In  recent  years,  India  has  been  an  attractive  destination  for  FDI.  India  has embarked  on  a  series  of  reforms  aimed  at  liberalizing  its  Foreign  Direct Investment (FDI) policies, to stimulate economic growth and encourage foreign capital inflows. 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. More than 90% of the FDI inflow is received under the automatic route, including sectors involving electronics and renewable energy. Recently, in the Union Budget 2025-26, the sectoral cap of insurance sector was increased to 100%  from  74%. National  Single  Window  System  (NSWS)  has  also  been launched as the online single point interface of the Government of India for investors to start any industry in India and take requisite permissions.

India and the European Free Trade Association (EFTA) signed the Trade and Economic Partnership Agreement (TEPA) on 10 th  March 2024 at New Delhi. EFTA  is  an  intergovernmental  organization  set  up  in  1960  comprising  of Switzerland,  Iceland,  Norway  &  Liechtenstein.  Under  TEPA,  EFTA  has committed to promote foreign direct investments by USD 100 billion in India in the next 15 years and to facilitate the generation of 1 million direct employment in  India,  through  such  investments.  To  achieve  this,  various  investment promotion and cooperation activities are envisaged to be taken up as per the

Agreement.  The  sectors  that  are  likely  to  see  the  highest  impact  from  the agreement include seafood & maritime, energy, healthcare, financial services, education and audio-visual services, pharmaceutical, mechanical & electrical engineering,  renewable  energy  and  food  &  food  processing.  The  TEPA  is expected to drive investments into India and give impetus to 'Make in India' initiative by encouraging domestic manufacturing in these sectors.

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.  In  the  recent  past,  reforms  in  the  FDI  Policy  have  been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas, Telecom  and  Space.  Further,  as  per  Para 5.2.5.1 of the Consolidated FDI Policy Circular dated 15.10.2020, as amended from time to time, 100 per cent FDI under automatic route is allowed in the Manufacturing sector. The total FDI inflows  from  April  2000  till  December  2024  is $1053.78 billion (Source: FDI Statistics, DPIIT).

- (b) to (d): 'Make in India' Initiative 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. Investment outreach is  being done through Ministries, State Governments and Indian Missions abroad for enhancing  International  co-operation  for  promoting  Domestic  and  Foreign Direct Investment (FDI) in the country. Presently, Make in India 2.0 focuses on 27 sectors implemented across various Ministries and Departments and State Governments.  The  list  of  sectors  under  Make  in  India  2.0  is  placed  at Annexure .

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. The purpose of the PLI Schemes is to attract  investments  in  key  sectors  and  cutting-edge  technology;  ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive. These schemes have the potential of significantly boosting production, employment and economic growth over the next five years or so.

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. The other major initiatives include Start-up India, National Single Window System (NSWS),  GIS  enabled  Land  Bank,  Foreign  Direct  Investment  (FDI)  policy reforms, PM Gati Shakti National Master Plan for integrated planning of multi- modal infrastructure, Project Monitoring Group to remove bottlenecks in setting up of major infrastructure projects, Special Packages for North Eastern and Himalayan Regions, etc.

Government of India is developing various Industrial Corridor Projects as part of  National  Industrial  Corridor  Development  Programme  (NICDP)  which  is aimed at development of greenfield industrial areas/region/nodes in India which can  compete with the best manufacturing and investment destinations in the world.  As  per  the  approved  institutional  &  financial  framework  of  Industrial Corridor  Programme,  State  Govt  provides  land  and  Government  of  India through  National  Industrial  Corridor  Development  and  Implementation  Trust (NICDIT) provides the equity for development of internal trunk infrastructure components.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (b) to (d) OF THE LOK SABHA UNSTARRED QUESTION 4099 FOR ANSWER ON 25.03.2025.

## 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:

- xvi. Information Technology & Information Technology enabled Services (IT & ITeS)
- xvii. Tourism and Hospitality Services
- xviii. Medical Value Travel
- xix. Transport and Logistics Services
- xx. Accounting and Finance Services
- xxi. Audio Visual Services
- xxii. Legal Services
- xxiii. Communication Services
- xxiv. Construction and Related Engineering Services
- xxv. Environmental Services
- xxvi. Financial Services
- xxvii. Education Services