Lok Sabha Question No. 2339 (UNSTARRED), answered on 2024-08-06
Subject: Request to Business Community
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Omprakash Bhupalsinh Alias Pavan Rajenimbalkar, Shri Arvind Ganpat Sawant, Shri Shrirang Appa Chandu Barne

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

## LOK SABHA

UNSTARRED QUESTION NO. 2339.

TO BE ANSWERED ON TUESDAY, THE 06 TH  AUGUST, 2024.

## REQUEST TO BUSINESS COMMUNITY

## 2339.  SHRI OMPRAKASH BHUPALSINH ALIAS PAVAN RAJENIMBALKAR: SHRI SHRIRANG APPA CHANDU BARNE: SHRI ARVIND GANPAT SAWANT:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has requested the business community to contribute substantially to make the economy of the country the third largest economy of the world and if so, the details thereof;
- (b) the reaction of the business community thereto alongwith the amount of Foreign Direct Investment (FDI) received during the last five years and the current year;
- (c) whether the Government is moving on a very different path today to strengthen the economy of the country and if so, the details thereof;
- (d) whether there is a need to take immediate steps to check the rising inflation in the country; and
- (e) if so, the steps taken by the Government in this regard alongwith the extent of success achieved in this regard, so far?

## 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) & (b): India is currently the fifth largest economy in the world and aspires to be third largest. The Government has taken a number of initiatives to boost confidence of the business community including increased ease of doing business while creating an ecosystem to enhanced industrialisation and make India globally competitive.

As part of enhanced Ease of Doing Business in the country, systematic and targeted efforts are being made to reduce the number of processes, reduce average time taken, rationalize costs and make it easier to do business in India. Initiatives like simplification of regulations, opening the strategic sectors for  the  private  players  and  rationalisation  of  labour  laws  have  boosted confidence of the business sector. Further, direct tax measures such as the restructuring of the corporate tax rates, reduced tax litigation and removal of tax uncertainties have considerably reduced the compliance burden. Introduction  of  Insolvency  and  Bankruptcy  Code  of  India  (IBC)  in  2016  to resolve insolvency focusing on maximization of value of assets by aiming at reorganization rather than liquidation of the Corporate Debtor. Initiatives like Introduction  of  SPICe+  and  AGILE  PRO-S  form  by  Ministry  of  Corporate Affairs (MCA) and digitization of land records have been top priorities to bring efficiency and transparency.

The reforms taken by Government have resulted in increased Foreign Direct Investment (FDI) inflows in the country. FDI inflows in India stood at US $ 45.15 billion in 2014-15 and registered its highest ever annual FDI inflow of US $ 84.84 billion in the financial year 2021-22. Financial year wise details of total FDI inflow reported in the country for last 5 years and the current year is placed at Annexure .

- (c): To strengthen the economy several major initiatives have been launched by the Government of India. 'Make in India' is one of the key initiatives which  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. It is one of the unique 'Vocal for Local' initiatives that promoted India's manufacturing domain to the world.

The activities under the Make in India initiative are also being undertaken by several Central  Government  Ministries/  Departments  and  various  State Governments. Ministries formulate  action  plans,  programmes,  schemes  and policies for the sectors being dealt by them, while States also have their own Schemes for attracting investments.

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.

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. With announcement of PLI Schemes, significant  improvement  in  production,  skills,  employment,  economic  growth and exports is expected over the next  five years and more. As of  now 755 applications have been approved across the country in 14 sectors out of which 176 applicants are from MSME sector.

Actual investment of Rs. 1.23 lakh crore have been realized till March 2024 across 14 sectors, which has resulted in incremental production/ sales of over Rs. 10.31 lakh crore and exports surpassing Rs 3.5 lakh crore.

- (d) & (e): Prompt and adequate measures by the Government of India and the Reserve Bank of India (RBI) have led to inflation being largely under control.

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ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA

UNSTARRED QUESTION NO. 2339 FOR ANSWER ON 06.08.2024. Table: Financial Year-wise Details of Total FDI Inflow

Amount (in USD Million)

|   S. No. | Financial Year (April - March)   | Total FDI Inlow   |
|----------|----------------------------------|-------------------|
|        1 | 2018-19                          | 62,001            |
|        2 | 2019-20                          | 74,391            |
|        3 | 2020-21                          | 81,973            |
|        4 | 2021-22                          | 84,835            |
|        5 | 2022-23                          | 71,355            |
|        6 | 2023-24(P)                       | 70,954            |

P: Provisional Source: RBI

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