Lok Sabha Question No. 18 (STARRED), answered on 2015-11-30
Subject: ^Make in India* Programme
Ministry: COMMERCE AND INDUSTRY
Asked by: OM BIRLA, MEENAKASHI LEKHI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

- *18. SHRI OM BIRLA:

SHRIMATI MEENAKASHI LEKHI:

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

- (a) the salient  features  of  the  'Make  in  India'  programme  launched  by  the Government;
- (b) the  details  of  the  sectors  identified  under  the  programme  and  the  response received from various sectors/States/UTs and  foreign countries and  the achievements made thereunder;
- (c) the  names  of  the  companies,  including  Multi-National  companies  which  have invested or shown interest to invest in the country under the said programme along with the investment made so far thereunder, sector-wise;
- (d)   whether there are any hindrances in successful implementation of the programme and if so, the details thereof along with the measures taken by the Government to remove them; and
- (e) the  promotional  plan  of  the  Government  to  capitalize  on  the  initial  interest  of Make  in  India/attract  foreign  investors  to  start  business  in  India  under  the Scheme?

## ANSWER

वाणिज् यएवंउद्योगााज् यमंत्रीस् वतंंत्र्रभााा(स्ीमतंीिरममलााीीतंाामि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

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

*****

STARRED QUESTION NO. 18.

TO BE ANSWERED ON MONDAY, THE 30 TH  NOVEMBER, 2015.

## 'MAKE IN INDIA' PROGRAMME

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  THE  LOK SABHA STARRED QUESTION NO. 18 FOR ANSWER ON 30.11.2015.

- (a)  to  (e): The  'Make  in  India'  initiative  aims  at  promoting  India  as  an  important investment destination and a global hub for manufacturing, design, and innovation.  The initiative is aimed at creating a conducive environment for  investment,  modern  and  efficient  infrastructure,  opening  up  new sectors  for  foreign  investments  and  forging  a  partnership  between government and industry through a positive mindset.

25  Sectors  have  been  identified  under  'Make  in  India'  viz.  (i)  Auto components, (ii) Automobiles (iii) Aviation (iv) Biotechnology, (v) Chemicals, (vi) Construction (vii) Defence Manufacturing (viii) Electrical Machinery, (ix) Electronic Systems, (x) Food Processing, (xi) IT & BPM, (xii)  Leather,  (xiii)  Media  &  Entertainment,  (xiv)  Mining,  (xv)  Oil  &  Gas (xvi)  Pharmaceuticals,  (xvii)  Ports  and  shipping  (xviii)  Railways,  (xix) Renewable Energy, (xx) Roads & Highways (xxi) Space, (xxii) Textiles and Garments (xxiii) Thermal Power (xxiv) Tourism and Hospitality, and (xxv) Wellness.

A positive response has been received from both within the country and globally  to  the  Make  in  India  campaign.  The  growth  in  FDI  has  been significant after the launch of Make in India initiatives in September 2014, with  48  percent  increase  in  FDI  equity  inflows  during  October  2014  to April 2015 over the corresponding period last year.

The  increased inflow of Foreign Direct Investment (FDI) in India especially in a climate of contracting worldwide investments indicates the faith  that  investors  have  reposed  in  the  country's  economy  and  the reforms initiated by the Government towards ease of doing business and further  liberalizing  the  economy.  The  Make  in  India  initiatives  of  the Government  and  its  outreach  to  all  investors  have  made  a  positive investment. Sector-wise FDI equity inflows from October  2014  to September 2015 is at Annexure A. The details of announcements made by  global  companies  to  invest  in  India  in  different  sectors  since  the launch of Make in India is at Annexure B.

A number of measures have been taken by the Government to improve ease  of  doing  business  in  India,  and  to  make  India  an  attractive destination for investment. To  further boost the entire investment environment  and  to  bring  in  foreign  investments  in  the  country,  the Government  has  brought  in  FDI  related  reforms  and  liberalization touching  upon  major  15  sectors  of  the  economy  by  putting  more  and more FDI proposals on automatic route.

Details of major initiatives taken in this regard are at Annexure C.

*****

## Annexure 'A'

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 18 FOR ANSWER ON 30.11.2015.

## SECTOR-WISE FDI EQUITY INFLOWS

## FROM OCTOBER 2014 TO SEPTEMBER 2015

| S.No   | Sector                                                                                                              | Amount of FDI Inflows   | Amount of FDI Inflows   | %age of Total Inflows   |
|--------|---------------------------------------------------------------------------------------------------------------------|-------------------------|-------------------------|-------------------------|
|        |                                                                                                                     | (In Rs crore)           | (In US$ million)        |                         |
| 1      | COMPUTER SOFTWARE & HARDWARE                                                                                        | 31,130.27               | 4,931.02                | 15.00                   |
| 2      | SERVICES SECTOR (Fin.,Banking,Insurance,Non Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other) | 29,307.80               | 4,665.41                | 14.19                   |
| 3      | TRADING                                                                                                             | 25,791.36               | 4,059.90                | 12.35                   |
| 4      | AUTOMOBILE INDUSTRY                                                                                                 | 19,798.21               | 3,154.21                | 9.60                    |
| 5      | CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES                                                                            | 10,885.38               | 1,721.62                | 5.24                    |
| 6      | TELECOMMUNICATIONS                                                                                                  | 6,887.13                | 1,083.20                | 3.30                    |
| 7      | HOTEL & TOURISM                                                                                                     | 5,873.13                | 924.04                  | 2.81                    |
| 8      | MINING                                                                                                              | 4,776.26                | 744.19                  | 2.26                    |
| 9      | CHEMICALS (OTHER THAN FERTILIZERS)                                                                                  | 4,678.43                | 741.33                  | 2.26                    |
| 10     | HOSPITAL & DIAGNOSTIC CENTRES                                                                                       | 4,500.76                | 711.83                  | 2.17                    |
| 11     | MISCELLANEOUS INDUSTRIES                                                                                            | 4,353.25                | 696.37                  | 2.12                    |
| 12     | DRUGS & PHARMACEUTICALS                                                                                             | 3,965.22                | 631.05                  | 1.92                    |
| 13     | INDUSTRIAL MACHINERY                                                                                                | 3,885.78                | 618.25                  | 1.88                    |
| 14     | POWER                                                                                                               | 3,893.17                | 618.15                  | 1.88                    |
| 15     | NON-CONVENTIONAL ENERGY                                                                                             | 3,467.78                | 544.96                  | 1.66                    |
| 16     | CONSULTANCY SERVICES                                                                                                | 3,396.40                | 531.30                  | 1.62                    |
| 17     | INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA)                                                                  | 3,295.63                | 514.43                  | 1.57                    |
| 18     | SEA TRANSPORT                                                                                                       | 3,001.10                | 477.54                  | 1.45                    |
| 19     | FOOD PROCESSING INDUSTRIES                                                                                          | 2,989.85                | 471.90                  | 1.44                    |
| 20     | METALLURGICAL INDUSTRIES                                                                                            | 2,636.05                | 415.71                  | 1.26                    |
| 21     | ELECTRICAL EQUIPMENTS                                                                                               | 2,473.94                | 392.29                  | 1.19                    |
| 22     | RUBBER GOODS                                                                                                        | 2,055.38                | 325.70                  | 0.99                    |
| 23     | FERMENTATION INDUSTRIES                                                                                             | 1,871.71                | 294.46                  | 0.90                    |
| 24     | DIAMOND,GOLD ORNAMENTS                                                                                              | 1,821.78                | 292.03                  | 0.89                    |
| 25     | MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES                                                                   | 1,780.44                | 282.96                  | 0.86                    |
| 26     | TEXTILES (INCLUDING DYED,PRINTED)                                                                                   | 1,735.74                | 275.99                  | 0.84                    |
| 27     | CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects         | 1,686.94                | 270.58                  | 0.82                    |
| 28     | SOAPS, COSMETICS & TOILET PREPARATIONS                                                                              | 1,661.91                | 264.69                  | 0.81                    |
| 29     | FERTILIZERS                                                                                                         | 1,376.61                | 224.40                  | 0.68                    |
| 30     | PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)                                                                      | 1,210.18                | 193.21                  | 0.59                    |
| 31     | EDUCATION                                                                                                           | 1,129.53                | 178.67                  | 0.54                    |
| 32     | MEDICAL AND SURGICAL APPLIANCES                                                                                     | 1,003.33                | 158.04                  | 0.48                    |
| 33     | PAPER AND PULP (INCLUDING PAPER PRODUCTS)                                                                           | 907.31                  | 144.37                  | 0.44                    |

| 34   | VEGETABLE OILS AND VANASPATI                              | 824.92     | 132.23    | 0.40   |
|------|-----------------------------------------------------------|------------|-----------|--------|
| 35   | SUGAR                                                     | 792.45     | 124.94    | 0.38   |
| 36   | ELECTRONICS                                               | 796.59     | 124.82    | 0.38   |
| 37   | CEMENT AND GYPSUM PRODUCTS                                | 717.68     | 116.16    | 0.35   |
| 38   | PETROLEUM & NATURAL GAS                                   | 665.09     | 105.18    | 0.32   |
| 39   | PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)     | 580.98     | 92.20     | 0.28   |
| 40   | EARTH-MOVING MACHINERY                                    | 543.78     | 86.23     | 0.26   |
| 41   | RETAIL TRADING                                            | 452.75     | 70.75     | 0.22   |
| 42   | AIR TRANSPORT (INCLUDING AIR FREIGHT)                     | 425.00     | 66.93     | 0.20   |
| 43   | AGRICULTURE SERVICES                                      | 372.14     | 59.07     | 0.18   |
| 44   | AGRICULTURAL MACHINERY                                    | 349.26     | 56.63     | 0.17   |
| 45   | CERAMICS                                                  | 339.70     | 53.71     | 0.16   |
| 46   | GLASS                                                     | 326.92     | 52.31     | 0.16   |
| 47   | TIMBER PRODUCTS                                           | 191.49     | 30.19     | 0.09   |
| 48   | MACHINE TOOLS                                             | 190.70     | 29.87     | 0.09   |
| 49   | LEATHER,LEATHER GOODS AND PICKERS                         | 163.69     | 26.23     | 0.08   |
| 50   | BOILERS AND STEAM GENERATING PLANTS                       | 165.96     | 26.08     | 0.08   |
| 51   | RAILWAY RELATED COMPONENTS                                | 146.65     | 23.20     | 0.07   |
| 52   | COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS                 | 116.83     | 18.44     | 0.06   |
| 53   | INDUSTRIAL INSTRUMENTS                                    | 50.60      | 7.88      | 0.02   |
| 54   | GLUE AND GELATIN                                          | 28.33      | 4.59      | 0.01   |
| 55   | DYE-STUFFS                                                | 21.60      | 3.32      | 0.01   |
| 56   | SCIENTIFIC INSTRUMENTS                                    | 20.13      | 3.19      | 0.01   |
| 57   | TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER) | 15.87      | 2.52      | 0.01   |
| 58   | DEFENCE INDUSTRIES                                        | 0.48       | 0.08      | 0.00   |
|      | Grand Total                                               | 207,527.38 | 32,870.55 |        |

****

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 18 FOR ANSWER ON 30.11.2015.

## ANNOUNCEMENTS MADE BY GLOBAL COMPANIES TO INVEST IN INDIA

| ELECTRONICS SYSTEMS DESIGN & MANUFACTURING   | ELECTRONICS SYSTEMS DESIGN & MANUFACTURING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CISCO                                        | Cisco is committed towards manufacturing in India and will invest $2 billion this year. The company will invest additional $60 million in India on training and facility expansion.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| LG                                           | LG has declared their Make in India agenda; wherein they are planning to establish a domestic manufacturing unit for smartphones, and will invest Rs 1000 crore in Research and Development projects in the country.                                                                                                                                                                                                                                                                                                                                                                                                                            |
| brightSKY                                    | Florida-based company BrightSKY is setting up a plant in Chhattisgarh for manufacturing electronics and telecom products. The Americian Company would be investing Rs 500 crore in the project. It would generate direct and indirect employment for over 600 people.                                                                                                                                                                                                                                                                                                                                                                           |
| QUANTA                                       | Taiwan's Quanta Computer Inc , the world's top contract PC manufacturer, which makes laptops and assembles watches for Apple Inc. is considering establishing a manufacturing base in India. Quanta announced that it will likely plow billions of dollars into establishing 10 to 12 facilities in India by 2020.                                                                                                                                                                                                                                                                                                                              |
| FOXCONN                                      | Foxconn Technology plans to manufacture Apple's iPhone in India, in a move that could lower prices in the world's No.3 smartphone market where the US firm trails Samsung Electronics and local players. Foxconn is planning to develop 10-12 facilities in India, including factories and data centres, by 2020.                                                                                                                                                                                                                                                                                                                               |
| Samsung                                      | Samsung has signed a memorandum of understanding with the UP government in January 2015 to expand its electronics and phone making plant in Noida with an investment of Rs 517 crore. Samsung Electronics is now considering setting up its third manufacturing plant in India. The company is scouting for land in Uttar Pradesh, Tamil Nadu and Gujarat for a new plant to make electronic goods, including smartphones. The company may invest $500 million to $1 billion, depending on the size of the land and other modalities and may even look to export from the plant at a later stage.                                               |
| Vivo                                         | Vivo entered India in December 2014. In April 2015, Vivo opened its first company-owned exclusive brand store Hyderabad. Vivo plans to set up a manufacturing plant in India over the next few years.                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Xiaomi                                       | Xiaomi, had earlier announced that they will be establishing a R&D unit in Bangalore, which will be the first venture out of its home country. With the establishment of a manufacturing plant in India, the company will be able to meet the high demand of the market. The production is likely to begin around end-2015.                                                                                                                                                                                                                                                                                                                     |
| Gionee                                       | Chinese smartphone maker Gionee Communication Equipment Co. Ltd. is selling smartphones in India and aims to double sales to 8 million smartphones in India in 2015 Gionee will set up a manufacturing plant in India that could serve as a hub supplying the company's Android handsets to multiple markets in the region. Gionee will more than double its local research and development team in India to 30 from 12 people currently. Xiaomi has recently leased a 22,000-square-foot office in one of the city's business parks, where it is setting up its India research center.                                                         |
| OPPO                                         | OPPO, Chinese smartphone manufacturer entered the India market in January 2014. OPPO sold around 400, 000 devices in India in 2014 and is targeting for 1.5 million units in 2015. OPPO will set up a handset manufacturing unit in India where it will make smartphones for India and overseas markets. It will focus on setting up a state of the art facility to manufacture world class smartphones for the Indian audience as well as key markets overseas. OPPO India has plans to expand more service centers this year. As of now, it has 120 service centers across India and is targeting to open 200 service centres by end of 2015. |

| Asus               | Asus plans to set up manufacturing unit in India. Asus is in the process of hiring a consultancy firm to evaluate the prospects of manufacturing in India. The company would also look at setting up a research and development lab in India.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Inventec           | Inventec Corporation, a Taiwan-based original device manufacturer (ODM) specialising in laptops, mobiles, and servers, will set up a production line at a leased factory in Chennai, India, with production set to begin at the end of the Q2 2015, or the start of Q3 2015.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Electronics        | Under the M-SIPS policy, the government provides 20-25 per cent subsidy on capital expenditure for manufacturers of electronics, under 26 categories. Proposals by white goods major Samsung India, Bosch Automotive Electronics, Continental Automotive, NIDEC are among those approved under MSIPS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| CELKON             | Celkon, one of the leading cellphone players, is right now in the planning process of setting up its manufacturing firm in Medchal, Telangana.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| AEROSPACE          | AEROSPACE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Airbus             | Airbus is planning to manufacture in India and has plans to raise its Indian outsourcing from $400mn to $2 billion. The group plans to expand the existing centres to take on comprehensive design responsibilities for Airbus group programmes. The group plans to set up final assembly lines, supply chains and related infrastructure for military transport aircraft and helicopters in India                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| LH Aviation        | French drone-maker LH Aviation signed an MoU with Indian OIS Advanced Technologies for the manufacturing of tactical drones in India The companies will collaborate for setting up a manufacturing plant through an industrial licence. This will allow a hundred drones intended for the Indian market to be produced locally.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Mahindra Aerospace | Mahindra and Airbus have announced their strategic 'Make in India' relationship. Mahindra Aerospace was awarded a significant manufacturing contract by Airbus Group company, Premium AEROTEC The multi-year contract envisages the manufacture and supply by Mahindra of a variety of metallic components that will be fitted into several Airbus aircraft programs as part of assemblies produced by Premium AEROTEC. Mahindra Aerospace's will deliver be in excess of a million parts per annum. The parts will be produced at the new Mahindra Aerostructures facility located at Narsapura, near Bengaluru, India. The facility will possess a comprehensive suite of capabilities to manufacture sheet metal parts and assemblies, such as CNC routing, automatic deburring, brake-press forming, stretch forming, hydro-forming, heat treatment, a fully- automated surface treatment line and over 9,000 sq. m. of floor space dedicated to assembly work. |
| FURNITURE          | FURNITURE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| IKEA               | IKEA will bring their suppliers to set up units in India. The move is likely to spin more jobs and help the Swedish company increase sourcing and exporting from India.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| FOOD PROCESSING    | FOOD PROCESSING                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Mars               | Mars International India is all set to invest Rs 1,005 crore (over $160 million) to set up its manufacturing plant in Pune. The company has signed an MoU with the Government of Maharashtra to set up a Greenfield project in Khed at Pune. The manufacturing plant will be the first from Mars International India in the country The investment will generate 200 direct jobs and over 1000 indirect jobs. Our Pune plant is planned to be completely eco-friendly and a Leed Gold certified facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| AUTOMOTIVE         | AUTOMOTIVE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Diamler Trucks     | Daimler India has sold more than 22,300 units and is number three in the heavy duty truck segment. Daimler Trucks plans to make India its export hub. Daimler expect 25% of Indian production going towards exports.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Ford               | US automobile giant Ford Motor Company has decided to invest another Rs 4,000 to Rs 5000 crore in an R&D centre in Chennai, after investing a billion dollar in a second plant in Sanand, Gujarat, said people familiar with the development. Post the establishment of the local R&D base, the company's Ford Technology Services India and Ford Global Business Service operation, which has over 10,000 workforce, will merge into a common organisation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

| Mercedes-Benz                      | Luxury car major Mercedes-Benz India has raised its investment to Rs 850 crore as part of the expansion plan of its factory at Pune. Mercedes-Benz will be doubling its annual capacity in India to 20,000 units.                                                                                                                                                                                                                                                                                                                                                                             |
|------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| RENEWABLE ENERGY                   | RENEWABLE ENERGY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Mytrah                             | Mytrah as planning to invest around $400 million in the next year in the Indian solar sector.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| J A Solar                          | The Essel Group has entered into a joint venture (JV) agreement with J A Solar, China's leading solar energy firm, to launch a solar cell and module manufacturing company in India. The JV will set up a manufacturing facility in India with an estimated capital expenditure of $150 million (approximately Rs 950 crore) out of which $30-45 million (Rs 190 to Rs 285 crore) will be by means of equity funding. It will focus on photo voltaic (PV) technology to manufacture solar cells, panels and modules in India. The facility is expected to generate 500 Mw of power per annum. |
| First Solar TRINA Solar            | US-based First Solar Inc and China's Trina Solar have plans to set up manufacturing facilities in India. Clean energy investments in India increased to US$ 7.9 billion in 2014, helping the country maintain its position as the seventh largest clean energy investor in the world.                                                                                                                                                                                                                                                                                                         |
| INFRASTRUCTURE                     | INFRASTRUCTURE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| WANDA                              | China's top real estate player, Dalian Wanda Group, plans to invest $10 billion in India in the next 10 years to construct industrial townships and retail properties. The Wanda group shared its intent to develop 10 urban complexes in the next 4-5 years in the country                                                                                                                                                                                                                                                                                                                   |
| ELECTRICAL EQUIPMENT               | ELECTRICAL EQUIPMENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Electricity transmission equipment | China's Baoding Tianwei Group & South Korea's Hyosung are planning to set up electricity transmission equipment manufacturing facilities in India                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| INTERNET SPACE                     | INTERNET SPACE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| SOFTBANK                           | Japanese telecom giant SoftBank plans to invest $10 billion in India in a bid to aggressively expand beyond its home base. The cash-rich company will invest in India's IT, communications and e-commerce sectors, where it sees immense potential.                                                                                                                                                                                                                                                                                                                                           |

*****

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. 18 FOR ANSWER ON 30.11.2015.

## Initiatives on Improving 'Ease of Doing Business' in India

The Government of India has taken up a series of measures to improve Ease of Doing Business. The emphasis has been on simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient and effective. The measures taken are:

1. India was ranked 142 nd in Doing Business Report, 2015.  The World Bank has released Doing Business Report, 2016 on 27 th October, 2015.  India is ranked at 130 (against a recalculated rank  of  134 th for  2015).    India's  rank  has  improved  in  'starting  a  business',  'dealing  with construction permit' and 'getting electricity' indicators.
2. A report titled 'Assessment of State Implementation of Business Reforms' was released on 14 th September  2015.  The  report  captures  the  findings  of  an  assessment of  reform implementation by States, led by DIPP, Ministry of Commerce and Industry, Government of India with support from World Bank group and KPMG. This assessment has been conducted to  take  stock  of  reforms  implemented  by  States  in  the  period  January  1  to  June  30  2015 based on a 98-point action plan for business reforms agreed between DIPP and State/UTs and rank them according to the ease of doing business.

The assessment reveals that States are at  different levels of implementation on the 98-point  action  plan.  The  implementation  status  of  each  State  has  been  converted  to  a percentage, and, on the basis of this the State rankings have been calculated.

Figure 1: Source: Assessment of State Implementation of Business Reforms, September 2015 published by DIPP

<!-- image -->

3. Process  of  applying  for  Industrial  License  (IL)  and  Industrial  Entrepreneur  Memorandum (IEM) has been made online and this service is now available to entrepreneurs on 24x7 basis at the eBiz website. This had led to ease of filing applications and online payment of service charges.
4. 20 services are integrated with the eBiz portal which will function as a single window portal for obtaining clearances from various governments and government agencies.  These services are given in Appendix.
5. Notification has been issued on 12-03-2015 by DGFT to limit number of documents required for export and import to three.
6. Ministry  of  Corporate  Affairs  has  introduced  an  integrated  process  of  incorporation  of  a company,  wherein  applicants  can  apply  for  Director's  Identification  Number  (DIN)  and company name availability simultaneous to incorporation application [Form INC-29].
7. The  Companies  (Amendment)  Act,  2015  has  been  passed  to  remove  requirements  of minimum paid-up capital and common seal for companies. It also simplifies a number of other regulatory requirements.
8. A comparative study of practices followed by the States for grant of clearance and ensuring compliances was conducted through M/s Accenture Services (P) Ltd. and six best practices were identified. These were circulated among all the states for peer evaluation and adoption. The study has also identified important bottlenecks faced by industries and important steps required to improve the business environment in States.
9. Application forms for Industrial Licence (IL) and Industrial Entrepreneur Memorandum (IEM) have been simplified.
10. Vide  Press  Note  3  (2014),  Defence  products'  list  for  industrial  licensing  has  been  issued, wherein large number of parts/components, castings/forgings etc. have been excluded from the purview of industrial licensing. Similarly dual use items, having military as well as civilian application  (unless  classified  as  defence  item)  will  also  not  require  Industrial  License  from defence angle. For these items only an Industrial Entrepreneur Memorandum (IEM) has to be filed.
11. Vide Press Note 5 (2014), initial validity period of Industrial License has been increased to three years from two years. This will give enough time to licensees to procure land and obtain the necessary clearances/approvals from authorities.
12. MHA  has  stipulated  that  it  will  grant  security  clearance  on  Industrial  Licence  Applications within 12 weeks. In matters other than Explosives and FIPB cases, security clearances are valid for three years unless there is a change in composition of management or shareholding.
13. Partial commencement of production is being treated as commencement of production of all the  items  included  in  the  license.  This  has  obviated  the  hardship  of  licensees  to  get  their Industrial License extended even though they have started production.
14. To facilitate  investors  and  to  reply  to  their  queries,  Frequently  Asked  Questions  (FAQs)  by applicants for grant of industrial license have been developed and uploaded on DIPP website.
15. Vide Press Note 4 (2014), the NIC Code NIC 2008 has been adopted, which is the advanced version of industrial classification. This code will allow Indian businesses to be part of globally recognized and accepted classification that facilitate smooth approvals/registration.
16. Vide  Press  Note  6  (2014),  the  'Security  Manual  for  Licensed  Defence  Industry'  has  been issued.  This  has  obviated  the  requirement  of  affidavit  from  applicants.  Earlier,  an  affidavit signed  before  Judicial  Magistrate  was  required  from  the  applicant  to  confirm  that  they  will comply with the safety & security guidelines/procedures laid down by the Ministry of Defence and Ministry of Home Affairs in Government of India. The applicants were facing difficulties in obtaining  such  affidavit  and  this  was  severely  delaying  the  issue  of  License  even  after approval of Licensing Committee.
17. A checklist with specific time-lines has been developed for processing all applications filed by foreign  investors  in  cases  relating  to  Retail/NRI/EoU  foreign  investments.  This  has  been placed on the DIPP website.
18. An Investor Facilitation Cell has been created in 'Invest India' to guide, assist and handhold investors during the entire life-cycle of the business.
19. SEZ Units allowed removing goods for repair, replacement, testing, calibration, quality testing and research and development on self-attestation.
20. Process of applying for Environment and Forests clearances has been made online through Ministry of Environment and Forests and Climate Change's portals http://environmentclearance.nic.in/ and http://forestsclearance.nic.in/ .
21. Requirement  for  Environment  Assessment  Report  is  required  for  industrial  shed,  school, college,  hostel  for  education  institution  above  20,000  square  meters  of  build-up  area  up  to 150,000 square meters of build-up area.
22. The issue of time taken in registration with Employees Provident Fund Organization (EPFO) and Employees State Insurance Corporation (ESIC) was taken up with the Ministry of Labour and Employment, Director General, ESIC and Central Provident Fund Commissioner. Both the  processes have  been  automated and ESIC registration number is being  provided on  a real-time basis.
23. An order facilitating revival and rehabilitation of MSMEs through banker's committee has been issued by Ministry of MSME.
24. A unified portal for registration of Units for LIN, reporting of inspection, submission of returns and grievance redressal has been launched by Ministry of Labour and Employment.
25. DIPP  has  requested  all  Secretaries  of  Government  of  India  and  Chief  Secretaries  of  the States/UTs  to  simplify  and  rationalize  the  regulatory  environment.  In  order  to  improve  the regulatory business environment they have been requested to take the following measures on priority: a) All returns should be filed on-line through a unified form; b) A check-list of required compliances  should  be  placed  on  Department's  web  portal;  c)  All  registers  required  to  be maintained  by  the  business  should  be  replaced  with  a  single  electronic  register;  d)  No inspection should be undertaken without the approval of the Head of the Department; and e) For all non-risk, non-hazardous businesses a system of self-certification should be introduced.
26. Registration process of VAT and Professional tax has been merged into a single process with single ID on 1st January, 2015 by the Government of Maharashtra.
27. Registration  for  VAT  in  Delhi  has  been  made  online.  TIN  allotment  is  done  real-time  and business can start immediately on receipt of TIN number.
28. The time required for giving a  new  electric connection in Mumbai has been reduced to 21 days from 67 days. The number of procedures  involved has been cut down to 3 from existing 7.
29. Simplified procedure for new electric connection in Delhi with reduced procedures and time.
30. Municipal Corporation  of Delhi has  launched  online application process  for grant of construction  permits  for  residential  and  industrial  buildings  on  16th  March,  2015  and commercial buildings in May, 2015.

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## Appendix

| List of 20 Central Government Services(Integrated)   | List of 20 Central Government Services(Integrated)   | List of 20 Central Government Services(Integrated)                                       |
|------------------------------------------------------|------------------------------------------------------|------------------------------------------------------------------------------------------|
| Sl. No.                                              | Ministry/ Dept.Name                                  | Service Name                                                                             |
| 1                                                    | Ministry of Corporate Affairs                        | Name Availability                                                                        |
| 2                                                    | Ministry of Corporate Affairs                        | Director Identification Number                                                           |
| 3                                                    | Ministry of Corporate Affairs                        | Certificate of Incorporation                                                             |
| 4                                                    | Ministry of Corporate Affairs                        | Commencement of Business                                                                 |
| 5                                                    | Central Board of Direct Taxes                        | Issue of Permanent Account Number (PAN)                                                  |
| 6                                                    | Central Board of Direct Taxes                        | Issue of Tax Deduction Account Number (TAN)                                              |
| 7                                                    | Reserve Bank of India                                | Advanced Foreign Remittance (AFR)                                                        |
| 8                                                    | Reserve Bank of India                                | Foreign Collaboration-General Permission Route (FC-GPR)                                  |
| 9                                                    | Employees' Provident Fund Organization               | Employer Registration                                                                    |
| 10                                                   | Employee's State Insurance Corporation               | Employer Registration                                                                    |
| 11                                                   | Petroleum and Explosives Safety Organization         | Issue of Explosive License                                                               |
| 12                                                   | Directorate General of Foreign Trade                 | Importer Exporter Code License                                                           |
| 13                                                   | Department of Industrial Policy and Promotion        | Industrial License                                                                       |
| 14                                                   | Department of Industrial Policy and Promotion        | Industrial Entrepreneur Memorandum                                                       |
| 15.                                                  | Department of Heavy Industry (DHI)                   | Issue of custom duty concession certificate to entrepreneurs under project import scheme |
| 16.                                                  | Central Board of Direct Taxes (CBDT)                 | Changes or correction in PAN data                                                        |
| 17.                                                  | Reserve Bank of India                                | Foreign Currency- Transfer of Shares                                                     |
| 18.                                                  | Ministry of Labour and Employment (MoL&E)            | Registration under the Contract Labour Act, 1970                                         |
| 19.                                                  | Ministry of Labour and Employment (MoL&E)            | Registration under the Building and other construction workers Act, 1996                 |
| 20.                                                  | Ministry of Labour and Employment (MoL&E)            | Registration under the Inter-State Migrant Workmen Act, 1979                             |

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