Lok Sabha Question No. 423 (UNSTARRED), answered on 2025-07-22
Subject: Strategy for attracting FDI
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Naveen Jindal

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

## LOK SABHA

UNSTARRED QUESTION NO. 423.

TO BE ANSWERED ON TUESDAY, THE 22 ND  JULY, 2025.

## STRATEGY FOR ATTRACTING FDI

## 423.   SHRI NAVEEN JINDAL:

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

- (a) the strategy of the Government for attracting Foreign Direct Investment (FDI) and  boosting  exports  and  the  measures  being  taken  to  address  trade imbalances;
- (b) the approach of the Government towards international trade negotiations and the  manner  in  which  these  negotiations  are  being  conducted  to  benefit  the country; and
- (c) the strategy of Government for managing foreign debt and ensuring financial stability in the face of global economic uncertainties?

## 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): The Government has put in place a liberal and transparent policy for attracting Foreign Direct Investment (FDI), wherein most of the sectors are open to FDI under  the  automatic  route.  Additionally,  the  FDI  policy  is  reviewed  on  an ongoing basis, and changes are made in the FDI policy regime from time to time to ensure that India remains an increasingly attractive and investor-friendly investment destination. As per Union Budget 2025, Government has signed Bilateral  Investment  Treaties  (BIT)  with  UAE  and  Uzbekistan  in  2024. Additionally, India and the European Free Trade Association (EFTA) signed the Trade and Economic Partnership Agreement (TEPA) on 10th March 2024 at New Delhi with a commitment of 100 billion in next 15 years.  Further, Invest India  has  been  setup  as  the  national  investment  promotion  and  facilitation agency to support India's broader economic vision, thereby bridging the gap between potential international investors and the country's diverse economic landscape.  It  also  undertakes  promotional  work  and  attract  Investment especially by expanding global investor awareness.

To boost exports and address trade imbalances, the Government has launched a  dynamic Foreign Trade Policy (FTP) from 1st April 2023 to boost exports through wider engagement with States and Districts. Schemes such as Trade Infrastructure for Export Scheme (TIES) and the Market Access Initiatives (MAI) Scheme  have  been  in  place  to  promote  exports  from  the  grassroots.  To promote labour-oriented sector exports Rebate of State and Central Levies and Taxes (RoSCTL) Scheme has been put in place. Further, support to the tune of around INR 45,000 Crores has been provided to Indian exporters under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme since January  2021.  Other  measures  to  promote  exports  include  the  Districts  as Export Hubs program, allowing rupee trading through Special Rupee Vostro Accounts. Additionally, regular monitoring of export performance is undertaken with  Commercial  Missions  abroad,  Export  Promotion  Councils,  Commodity Boards and Industry Associations for taking corrective measures from time to time.

- (b): The Government  adopts a structured  and consultative approach  to international trade negotiations. For initiating any Free Trade Agreement (FTA), a  Joint  Study  Group  (JSG)  is  normally  set  up  to  study  the  feasibility  of  the proposed FTAs, including their impact on the domestic industry. Stakeholders, including industry representatives, Apex Chambers of Commerce and Industry,  Industry  Associations,  as  well  as  the  Administrative  Ministries  and Departments, are regularly consulted. In order to protect the interests of the domestic industry, FTAs  provide  for maintaining sensitive, negative or exclusion lists of items on which limited or no tariff concessions are granted. FTAs are entered into with the concerned trading partner countries primarily to increase  bilateral  trade  through  enlarging  the  scope  of  market  access  and building on the trade complementarities for increasing trade and investment. This helps increase export potential, benefiting both industry and farmers, while also  creating  job  opportunities  and  ensuring  a  level  playing  field  for  Indian exporters vis-à-vis competitors who may have preferential access in our trading partner countries.
- (c): The Government of India adopts a prudent and well-structured external debt management policy,  aimed  at  maintaining  both  sustainable  debt  levels  and overall  financial  stability.  The  policy  ensures  close  monitoring  of  long-  and short-term  debt,  mobilisation  of  sovereign  loans  on  concessional  terms  with longer maturities, regulation of external commercial borrowings, and rationalization of  interest  rates  on  NRI  deposits.    According  to  the  Financial Stability Report, June 2025 (FSR), the Indian economy continues to grow at a healthy pace, accompanied by steadily moderating inflation, which is supporting macroeconomic and financial stability.

To  complement  this,  the  Government  has  introduced  several  initiatives  to enhance Ease of Doing Business (EoDB) focusing on Reducing Compliance Burden (RCB), Decriminalization and National Single Window System (NSWS). These initiatives include Business Reform Action Plan (BRAP), the BusinessReady  assessment,  Jan  Vishwas  and  Reducing  Compliance  Burden  on

Businesses and Citizens. 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. These have resulted in reduction of compliance burden, regulatory barriers, streamlining processes, developing  infrastructure,  enhancing  logistics  and  improving  the  business environment  in  the  country.  Additionally,  the  domestic  financial  system  is exhibiting  resilience  fortified  by  healthy  balance  sheets  of  banks  and  nonbanks.   As per FSR, external debt remained moderate at 19.1% of GDP, and short-term  debt  stood  at  45.4%  of  foreign  exchange  reserves,  reflecting  a resilient and well-managed external sector

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