Lok Sabha Question No. 258 (STARRED), answered on 2023-12-20
Subject: Foreign Investment in Manufacturing Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: M. Selvaraj

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

## LOK SABHA

STARRED QUESTION NO. 258.

TO BE ANSWERED ON WEDNESDAY, THE 20 TH  DECEMBER, 2023.

## FOREIGN INVESTMENT IN MANUFACTURING SECTOR

## *258.  SHRI M. SELVARAJ:

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

- (a ) whether India is rapidly emerging as a preferred country for foreign investments in the manufacturing sector;
- (b) if so, the details thereof;
- (c) the details of the quantum of foreign investments earned by the country during the last five years, State-wise;
- (d) whether the Union Government has given any concessions/incentives to those foreign companies to attract more investments for ease of doing business in the country; and
- (e) if so, the details thereof?

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

- (a) to (e): A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED  QUESTION NO.  258  FOR  ANSWER  ON  20 th  DECEMEBR,  2023  REGARDING  'FOREIGN INVESTMENT IN MANUFACTURING SECTOR'.

- (a) & (b): India is rapidly emerging as a preferred country for foreign investment in the manufacturing  sector.  Foreign  Direct  Investment  (FDI)  equity  inflow  in  the manufacturing  sectors  in  the  last  nine  financial  years  i.e.  2014-23  has increased by 55% to USD 148.97 billion as compared to USD 96  billion in the previous nine financial years i.e. 2005-14.
- (c): State-wise  details  of  foreign  investments  reported  through  Foreign  Direct Investment  (FDI)  Equity  inflow  in  the  country  is  maintained  since  October, 2019. Details are given at Annexure-I.
- (d) & (e): Government reviews the FDI policy on an ongoing basis and makes significant changes from time to time, to ensure that India remains attractive & investor friendly  destination.  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  for  100%  FDI  under  the automatic  route.  The  Government  has  implemented  several  radical  and transformative FDI reforms across sectors such as Defence, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Civil  Aviation,  Power  Exchanges,  e-  commerce  activities,  Coal  Mining, Contract Manufacturing, Digital Media, Insurance Intermediaries, Insurance, Petroleum & Natural Gas and Telecom, etc.

Along with foreign investment, Government of India has undertaken various steps to boost domestic investments in India. These include  introduction of Goods  and  Services  Tax,  rationalization  in  Corporate  tax,  interventions  to improve  Ease  of  Doing  Business,  measures  for  reduction  in  compliance burden, measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing  Programme (PMP), to name a few.

Government has taken a series of policy initiatives to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth. These includes Atmanirbhar packages, introduction of Production Linked Incentive (PLI) Scheme in fourteen (14) sectors, 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), 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.

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ANNEXURE-I

ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA STARRED QUESTION  NO.  258  FOR  ANSWER  ON  20 TH   DECEMEBR,  2023  REGARDING 'FOREIGN INVESTMENT IN MANUFACTURING SECTOR'.

| Sr. No.   | State Name                               | Amount (In USD Million)   |
|-----------|------------------------------------------|---------------------------|
| 1         | MAHARASHTRA                              | 61,920.84                 |
| 2         | KARNATAKA                                | 47,304.66                 |
| 3         | GUJARAT                                  | 34,186.62                 |
| 4         | DELHI                                    | 28,300.10                 |
| 5         | TAMIL NADU                               | 9,850.25                  |
| 6         | HARYANA                                  | 8,795.22                  |
| 7         | TELANGANA                                | 5,920.99                  |
| 8         | JHARKHAND                                | 2,665.71                  |
| 9         | RAJASTHAN                                | 2,252.36                  |
| 10        | WEST BENGAL                              | 1,511.40                  |
| 11        | UTTAR PRADESH                            | 1,444.63                  |
| 12        | PUNJAB                                   | 1,030.56                  |
| 13        | ANDHRA PRADESH                           | 872.62                    |
| 14        | KERALA                                   | 814.62                    |
| 15        | MADHYA PRADESH                           | 542.19                    |
| 16        | HIMACHAL PRADESH                         | 246.75                    |
| 17        | BIHAR                                    | 214.51                    |
| 18        | UTTARAKHAND                              | 183.15                    |
| 19        | Dadra and Nagar Haveli and Daman and Diu | 171.36                    |
| 20        | ODISHA                                   | 165.54                    |
| 21        | GOA                                      | 147.31                    |
| 22        | CHANDIGARH                               | 94.82                     |
| 23        | PUDUCHERRY                               | 64.76                     |
| 24        | CHHATTISGARH                             | 53.88                     |
| 25        | ASSAM                                    | 20.74                     |
| 26        | ARUNACHAL PRADESH                        | 5.55                      |
| 27        | MEGHALAYA                                | 1.10                      |
| 28        | JAMMU AND KASHMIR                        | 1.08                      |
| 29        | TRIPURA                                  | 0.56                      |
| 30        | LADAKH                                   | 0.22                      |
| 31        | NAGALAND                                 | 0.01                      |
| 32        | MANIPUR                                  | 0.001                     |
| 33        | State Not Indicated                      | 28.32                     |
|           | Gross-Total                              | 208,812.44                |

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