Lok Sabha Question No. 1250 (UNSTARRED), answered on 2016-05-02
Subject: Make in India Programme
Ministry: COMMERCE AND INDUSTRY
Asked by: MURALI MOHAN MAGANTI, CHANDRA PRAKASH JOSHI, RAJESHBHAI NARANBHAI CHUDASAMA, KIRIT PREMJIBHAI SOLANKI, NARANBHAI KACHHADIA, KAUSHALENDRA KUMAR

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

## LOK SABHA

UNSTARRED QUESTION NO. 1250. TO BE ANSWERED ON MONDAY, THE 2 ND  MAY, 2016.

## MAKE IN INDIA PROGRAMME

1250.  SHRI M. RAJA MOHAN REDDY:

SHRI CHANDRA PRAKASH JOSHI:

SHRI RAJESHBHAI CHUDASAMA:

DR. KIRIT P. SOLANKI:

SHRI NARANBHAI KACHHADIYA:

SHRI KAUSHALENDRA KUMAR:

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

## वाणिज् यवव द्यग ं ्री

- (a) the  salient  features  of  the  'Make  in  India'  programme  along  with  the  status  of  its implementation and the names of foreign countries/companies including multi-national companies and big  corporate  houses  which  have  invested  in  the  country  under  this programme;
- (b) the details of the sectors identified and are likely to be benefited the most under the programme  and  the  response  received  from  various  sectors/States/UTs  and  foreign countries and the achievements made thereunder;
- (c) the  details  of  the  agreements  signed  with  other  countries  under  'Make  in  India' programme  and  the  investments/  FDI  made  and  approved  therein,  sector  and company-wise along with the likely employment generation therefrom;
- (d) whether the Government has identified any hindrances in the implementation of 'Make in  India'  programme  and  if  so,  the  details  thereof  along  with  the  steps  taken  by  the Government to remove them and promote the 'Make in India' initiative;
- (e) the details of the facilities being extended/ to be extended for setting up of industries to companies  including  foreign  companies  under  the  said  programme  along  with  the steps taken  by  the  Government  to  boost  the  manufacturing  sector/reduce  the manufacturing cost; and
- (f) whether  the  Government  has  any  plan  to  focus  the  'Make  in  India'  programme  on backward and poor States of the country and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): Make in India initiative has been launched to project India as a preferred investment destination and a global manufacturing hub. The major objective behind the initiative is to renew focus on job creation, skill development, fostering innovation and high quality standards in 25 sectors. Make in India initiative focuses on four key areas to promote

manufacturing and entrepreneurship viz.  Policy Initiatives & New Processes; Robust Infrastructure; Focus Sectors; New Mind-set/Approach;

As part of the Make in India initiative several steps have been taken collectively by all the  government  departments  and  states  to  promote  investments  from  Indian  and Foreign investors in the focus sectors. The key is to create an enabling environment for investments  in  the  select  25  focus  sectors.  It  aims  at  promoting  the  'ease  of  doing business' measures taken up by states and central government ministries.

- (b): 25 Focus sectors have been identified for growth under the initiative viz. Automobiles; Auto components; Aviation; Biotechnology; Chemicals; Construction; Defence manufacturing;  Electrical  machinery;  Electronic  system  design  and  manufacturing; Food processing; IT and BPM; Leather; Media and entertainment; Mining; Oil and gas; Pharmaceuticals;  Ports;  Railways;  Renewable  energy;  Roads  and  highways;  Space; Textiles; Thermal power; Tourism & Hospitality and Wellness.
- (c): No such information is maintained centrally at one place.
- (d): The Government is taking various measures for bringing investments to the country  like  opening  up  Foreign  Direct  Investment in many sectors; carrying out FDI related reforms and liberalization and improving ease of doing business in the country. Some of the recent initiatives are at Annexure.
- (e): Steps are being taken for  development of support infrastructure to facilitate setting up of industries such as transport infrastructure, utility infrastructure etc. These steps shall bring down cost thereby boosting the manufacturing sector.
- (f): The Make in India initiative is a national initiative targeting development of all states at large.  Each  state  has  its  own  special  features  which  make  it  an  ideal  investment destination in particular sectors. This initiative with the support of State Governments and Union ministries aims at development of manufacturing sector of the country as a whole.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO  PART (d) OF THE LOK SABHA UNSTARRED QUESTION NO. 1250 FOR ANSWER ON 02.05.2016.

## Recent FDI Initiatives

1. 100% FDI under the automatic route has been allowed in the specified rail infrastructure projects.
2. Investment made by NRIs, PIOs and OCIs under Schedule 4 of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations on non-repatriation basis is now deemed to be domestic investment at par with the investment made by residents.
3. The  special  dispensation  of  NRIs  has  also  been  extended  to  companies,  trusts  and partnership firms, which are  incorporated outside India and are owned and controlled by NRIs.
4. 100% FDI under automatic route for manufacturing of medical devices has been permitted.
5. FDI Policy on Insurance sector reviewed to increase the sectoral cap of foreign investment from 26% to 49% with foreign investment up to 26% to be under automatic route. Similar changes have also been brought in the FDI Policy on Pension Sector.
6. In  order  to  provide  simplicity  to  the  FDI  policy  and  bring  clarity  on  application  of conditionalities and approval requirements across various sectors, different kinds of foreign investments have been made fungible under one composite cap.
7. FDI up to 100% through automatic route has been allowed in White Label ATM Operations.
8. Reforms in FDI Policy on Constructions Development sector include:
- a)  Removal of conditions of area restriction of floor area of 20,000 sq. mtrs in construction development  projects  and  minimum  capitalization  of  US  $  5  million  to  be  brought  in within the period of six months of the commencement of business.
- b)  Exit and repatriation of foreign investment is now permitted after a lock-in-period of three years.  Transfer  of  stake  from  one  non-resident  to  another  non-resident,  without repatriation of investment is also neither to be subjected to any lock-in period nor to any government approval.
- c)  Exit is permitted at any time if project or trunk infrastructure is completed before the lockin period.
- d)  100% FDI under automatic route is permitted in completed projects for operation and management of townships, malls/ shopping complexes and business centres.
9. Foreign investment up to 49% in defence sector has been permitted under automatic route along with specified conditions. Further portfolio investment and investment by FVCIs has been  allowed  up  to  permitted  automatic  route  level  of  49%.  The  foreign  investment  in access of 49% has been allowed on case to case basis with Government approval in case of access to modern and 'state-of-art' technology related manufacturing.
10.  FDI policy on Broadcasting sector has also been amended as under:
11. Government  has  decided  to  introduce  full  fungibility  of  foreign  investment  in  BankingPrivate sector. Accordingly, FIIs/FPIs/QFIs, following due procedure, can now invest up to sectoral limit of 74%, provided that there is no change of control and management of the investee company.
12.  Government  has  opened  certain  plantation  activities  namely;  coffee,  rubber,  cardamom, palm  oil  tree  and  olive  oil  tree  plantations  for  100%  foreign  investment  under  automatic route.
13.  It  has  been  decided  that  a  manufacturer  will  be  permitted  to  sell  its  product  through wholesale and/or retail, including through e-commerce under automatic route.
14.  Government  has  reviewed  single  brand  retail  trading  (SBRT)  FDI  policy  to  provide  that sourcing of 30% of the value of goods purchased would be reckoned from the opening of first  store.  In  case  of  'state-of-art'  and  'cutting-edge  technology'  sourcing  norms  can  be relaxed subject to Government approval. Further, an entity operating SBRT through brick and mortar stores has been permitted to undertake e-commerce activities as well.
15.  Indian  brands are equally eligible for FDI to undertake SBRT. In this regard, it has been decided that certain conditions of the FDI policy on the sector namely; products to be sold under the same brand internationally and investment by non-resident entity/ entities as the brand owner or under legally tenable agreement with the brand owner, will not be made applicable in case of FDI in Indian brands.
16.  100%  FDI  is  now  permitted  under  automatic  route  in  Duty  Free  Shops  located  and operated in the Customs bonded areas.
17. FDI policy on wholesale cash & carry activities has been reviewed to provide that a single entity will be permitted to undertake both the activities of SBRT and wholesale.
18.  100% FDI is now permitted under the automatic route in Limited Liability Partnerships (LLP) operating in sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions. Further, the terms 'ownership and 'control'

| Sector/Activity                                                                                                                                                                                                                                                                                                                                                                                                                                                | New Cap and Route                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| 6.2.7.1.1 (1) Teleports (setting up of up-linking HUBs/Teleports); (2) Direct to Home (DTH); (3) Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability); (4) Mobile TV ; (5) Headend-in-the Sky Broadcasting Service (HITS) 6.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and | 100% (Up to 49% - Automatic route Beyond 49% - under Government route) |
| addressability and Local Cable Operators (LCOs)) Services                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                        |
| 6.2.7.2 Broadcasting Content                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                        |
| 6.2.7.2.1 Terrestrial Broadcasting FM (FM Radio) , 6.2.7.2.2 Up-linking of 'News & Current Affairs' TV Channels                                                                                                                                                                                                                                                                                                                                                | 49% Government route                                                   |
| 6.2.7.2.3 Up-linking of Non-'News & Current Affairs' TV Channels Down-linking of TV Channels                                                                                                                                                                                                                                                                                                                                                                   | 100% Automatic route                                                   |

with reference to LLPs have also been defined. 19.  Regional Air Transport Service (RSOP) has been opened for foreign investment up to 49% under  automatic  route.  Further,  foreign  equity  cap  of  activities  of  Non-Scheduled  Air Transport  Service,  Ground  Handling  Services  have  been  increased  from  74%  to  100% under the automatic route. 20.  Foreign  investment  cap  on  Satellites-  establishment  and  operation  has  now  been  raised from 74% to 100% under the government route. 21.  Foreign  investment  cap  on  Credit  Information  Companies  has  now  been  increased  from 74% to 100% under the automatic route. 22.  Government  has  decided  that  for  infusion  of  foreign  investment  into  an  Indian  company which does not have any operations and also does not have any downstream investments, Government  approval  would  not  be  required,  for  undertaking  activities  which  are  under automatic route and without FDI-linked performance conditions. 23.  FDI policy on establishment and ownership or control of the Indian company  in sectors/activities  with  caps  requiring  Government approval has been reviewed to provide that approval of the Government will be required if the company concerned is operating in sectors/ activities which are under Government approval route rather than capped sectors. Further  no  approval  of  the  Government  is  required  for  investment  in  automatic  route sectors by way of swap of shares. 24.  Certain conditions of FDI policy on Agriculture and Animal Husbandry, and Mining and mineral  separation  of  titanium  bearing  minerals  and  ores,  its  value  addition  and integrated activities have been simplified. 25.  In order to achieve faster approvals on most of the proposals, the Government has decided to raise threshold limit for approval by FIPB to Rs 5000 crore.

26.  Further, Finance Minister in its Budget Speech on 29.2.2016 has announced that 100% FDI will be allowed through FIPB route in marketing of food   products produced and manufactured in India. This will benefit farmers, give impetus to food processing industry and create vast employment  opportunities.

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