Lok Sabha Question No. 2541 (UNSTARRED), answered on 2016-03-14
Subject: 'Make in India' Programme
Ministry: COMMERCE AND INDUSTRY
Asked by: ARJUN RAM  MEGHWAL

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

## LOK SABHA

## UNSTARRED QUESTION NO. 2541. TO BE ANSWERED ON MONDAY, THE 14 TH  MARCH, 2016.

## 'MAKE IN INDIA' PROGRAMME

## 2541. SHRI ARJUN MEGHWAL:

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

## वाणिज् य वव  द्यग  म त्री

- (a) whether  the  Government  has  expanded  policy  and  action  plan  under  the  'Make  in  India' Programme;
- (b) if so, the details thereof;
- (c) whether  the  Government  is  stressing  upon  foreign  investment  in  order  to  promote  Make  in India Programme; and
- (d) if  so,  the  total  amount  of  investment  received  along  with  the  names  of  the  countries  from which the same has been received so far?

## ANSWER

## वाणिज् य वव  द्यग  ााज् यम त्री स् वतं त्र ्रभााा(स्ीमतंी िरममलाा ीीतंाामि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

## (a) to (c):

The Government launched the 'Make in India' initiative in September, 2014, with the aim  to  promote  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,  development  of  modern  and  efficient  infrastructure, opening  up  new  sectors  for  foreign  investments  and  forging  a  partnership  between government and industry through a positive mindset.

A National Workshop was held on 'Make in India' initiative on 29th December 2014 to prepare Action Plans for one year and three years for the 22 identified sectors, viz., (i) Automobiles & Auto Components, (ii) Aviation, (iii) Aerospace & Defence, (iv) Basic Metals & Cement, (v) Biotechnology, (vi) Chemicals and Petrochemicals, (vii) Food Processing, (viii) Gems & Jewellery, (ix) ICTE Manufacturing, (x) Leather and Leather Products, (xi) Media &  Entertainment, (xii) MSME,  (xiii) Oil &  Gas, (xiv) Pharmaceuticals,  (xv) Power,  (xvi) Ports and  Shipping,  (xvii) Railways,  (xviii) Renewable Energy, (xix) Roads & Highways, (xx) Skill Development, (xxi) Textiles & Apparel  and  (xxii)  Tourism.  Ministries/Departments  concerned  have  updated  their action  plans  to  identify  quantifiable  and  measurable  milestones  in  respect  of  each activity of their Action Plan. Cabinet Secretariat is monitoring the progress on Make in India Action Plans with the help of a professional agency.

Government has undertaken a number of steps to improve Ease of Doing Business in India. Ministries and State Governments have been advised to simplify and rationalize the regulatory environment  through business process reengineering and use of information technology.  Other important measures taken by the government to boost the  business  regulatory  environment  and  to  improve  Ease  of  Doing  Business  in  the country include integration of 20 services on e-biz portal to function as single window portal for obtaining Government clearances, integration of the process of incorporation of the company and application for Director's Identification Number (DIN), removal of requirements of minimum paid-up capital and common seal of companies, simplification of the procedure for Industrial License (IL) and Industrial Entrepreneur's Memorandum (IEM), excluding a number of parts/ components from the purview of Industrial Licensing and issue of security manual for license defence industry to obviate the requirement of affidavit from applicant. As per the World Bank Report on Ease of Doing Business, 2016, rank of India improved from 142 nd position to 130 th position.

Since  August,  2014,  the  Government  has  brought  in FDI  related reforms and liberalisation in a number of sectors/ areas of the economy. Gist of main reforms on FDI policy is at Annexure-I .

- (d): A statement on country-wise FDI equity inflows from October 2014 to December 2015 is at Annexure-II.

*********

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (c)  OF  THE  LOK  SABHA UNSTARRED  QUESTION  NO  2541  FOR  14.03.2016  REGARDING  ''MAKE  IN  INDIA' PROGRAMME'.

## FDI policy reforms since August, 2014

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 lock-in 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 Banking-Private 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' 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.

| 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 addressability | 100% (Up to 49% - Automatic route Beyond 49% - under Government route) |
| 6.2.7.2 Broadcasting Content Services                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                        |
| 6.2.7.2.1 Terrestrial Broadcasting FM(FM Radio) ,                                                                                                                                                                                                                                                                                                                                                                                                                             | 49% Government route                                                   |
| 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                                                                                                                                                                                                                                                                                                                                                                                                              | 100% Automatic route                                                   |
| Down-linking of TV Channels                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 100% Automatic route                                                   |

*******

## ANNEXURE-II

## ANNEXURE REFERRED TO IN REPLY TO PART  (d) OF THE LOK SABHA UNSTARRED QUESTION NO 2541 FOR 14.03.2016 REGARDING ''MAKE IN INDIA' PROGRAMME'.

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM OCTOBER 2014 TO DECEMBER 2015

|   Sl No | Country         | 2014-15 Oct-Mar FDI   | 2015-16 Apr-Dec FDI   | Total     |
|---------|-----------------|-----------------------|-----------------------|-----------|
|       1 | Australia       | 40.07                 | 133.77                | 173.85    |
|       2 | Austria         | 8.73                  | 6.98                  | 15.71     |
|       3 | Bahamas         | 0.25                  | 0.42                  | 0.67      |
|       4 | Baharain        | 13.64                 | 3.99                  | 17.63     |
|       5 | Argentina       | 0.00                  | 0.00                  | 0.00      |
|       6 | Belgium         | 17.21                 | 61.89                 | 79.10     |
|       7 | Belarus         | 0.01                  | 0.01                  | 0.03      |
|       8 | Brazil          | 0.56                  | 1.06                  | 1.62      |
|       9 | Bangladesh      | 0.00                  | 0.02                  | 0.02      |
|      10 | Bulgaria        | 0.99                  | 0.05                  | 1.04      |
|      11 | Canada          | 22.56                 | 73.15                 | 95.70     |
|      12 | Caymen Islands  | 52.57                 | 185.54                | 238.12    |
|      13 | Channel Islands | 0.13                  | 1.71                  | 1.83      |
|      14 | China           | 449.14                | 425.75                | 874.89    |
|      15 | Czech Republic  | 0.41                  | 2.65                  | 3.06      |
|      16 | Cyprus          | 209.21                | 400.05                | 609.26    |
|      17 | Denmark         | 16.99                 | 10.75                 | 27.74     |
|      18 | Estonia         | 0.18                  | 0.30                  | 0.47      |
|      19 | Finland         | 30.33                 | 39.19                 | 69.52     |
|      20 | Chile           | 0.00                  | 0.00                  | 0.00      |
|      21 | France          | 257.39                | 367.47                | 624.87    |
|      22 | Greece          | 2.47                  | 0.13                  | 2.59      |
|      23 | Germany         | 743.14                | 790.26                | 1,533.40  |
|      24 | HongKong        | 272.67                | 313.02                | 585.69    |
|      25 | Hungary         | 0.18                  | 0.42                  | 0.60      |
|      26 | Indonesia       | 1.51                  | 1.31                  | 2.82      |
|      27 | Ireland         | 12.37                 | 12.13                 | 24.49     |
|      28 | Isle of Man     | 0.02                  | 0.00                  | 0.02      |
|      29 | Israel          | 8.87                  | 10.00                 | 18.87     |
|      30 | Italy           | 119.86                | 192.35                | 312.21    |
|      31 | Liechtenstein   | 0.04                  | 4.89                  | 4.94      |
|      32 | Japan           | 1,145.72              | 1,082.00              | 2,227.72  |
|      33 | Korea(North)    | 0.18                  | 0.03                  | 0.21      |
|      34 | Lebanon         | 0.44                  | 0.09                  | 0.52      |
|      35 | South Korea     | 68.17                 | 209.50                | 277.68    |
|      36 | Kuwait          | 1.17                  | 2.15                  | 3.32      |
|      37 | Luxembourg      | 143.34                | 701.07                | 844.41    |
|      38 | Malaysia        | 12.12                 | 53.16                 | 65.27     |
|      39 | Mauritius       | 4,809.68              | 6,104.76              | 10,914.44 |
|      40 | Mexico          | 2.80                  | 18.98                 | 21.78     |
|      41 | Maldives        | 0.00                  | 0.01                  | 0.01      |
|      42 | Nepal           | 0.00                  | 0.21                  | 0.21      |
|      43 | Netherlands     | 1,457.46              | 2,146.86              | 3,604.32  |

| 44      | NewZealand             | 2.74        | 7.81         | 10.55        |
|---------|------------------------|-------------|--------------|--------------|
| 45      | Nigeria                | 0.19        | 0.14         | 0.33         |
| 46      | Norway                 | 12.26       | 6.43         | 18.70        |
| 47      | Oman                   | 7.15        | 47.63        | 54.78        |
| 48      | Panama                 | 2.04        | 1.17         | 3.21         |
| 49      | Philippines            | 19.96       | 7.46         | 27.42        |
| 50      | Poland                 | 3.90        | 0.09         | 3.99         |
| 51      | Portugal               | 0.69        | 4.11         | 4.81         |
| 52      | Qatar                  | 0.19        | 0.63         | 0.82         |
| 53      | Romania                | 0.75        | 0.45         | 1.20         |
| 54      | Russia                 | 118.41      | 18.49        | 136.90       |
| 55      | Saudi Arabia           | 6.87        | 6.07         | 12.93        |
| 56      | Singapore              | 4,308.76    | 10,984.57    | 15,293.34    |
| 57      | Scotland               | 8.90        | 0.00         | 8.90         |
| 58      | South Africa           | 62.17       | 1.93         | 64.10        |
| 59      | Slovakia               | 0.07        | 5.45         | 5.51         |
| 60      | Spain                  | 115.64      | 117.10       | 232.75       |
| 61      | Sri Lanka              | 1.37        | 4.48         | 5.85         |
| 62      | Sweden                 | 23.03       | 91.91        | 114.95       |
| 63      | Slovenia               | 0.00        | 0.23         | 0.23         |
| 64      | Switzerland            | 193.27      | 156.77       | 350.03       |
| 65      | Taiwan                 | 3.20        | 74.22        | 77.42 34.49  |
| 66      | Thailand               | 23.73       | 10.76        |              |
| 67 68   | Turkey UAE             | 4.08 224.25 | 37.58 401.80 | 41.66 626.04 |
| 69      | United Kingdom         | 489.74      | 503.17       | 992.91       |
| 70      | U.S.A                  | 627.16      | 3,511.39     | 4,138.55     |
| 71      | Ukraine                | 2.51        | 0.64         | 3.14         |
| 72      | Venezuela              | 0.00        | 0.00         | 0.00         |
| 73      | Uruguay                | 0.73        | 0.00         | 0.73         |
| 74      | British Virginia       | 19.55       | 52.99        | 72.53        |
| 75      | West Indies            | 0.00        | 0.12         | 0.12         |
| 76      | Malta                  | 0.60        | 0.00         | 0.60         |
| 77      | Muscat                 | 0.01        | 0.00         | 0.01         |
| 78      | Tanzania               | 0.03        | 0.36         | 0.38         |
| 79      | Georgia                | 0.00        | 0.09         | 0.09         |
| 80      | Gibraltar              | 0.04        | 0.00         | 0.04         |
| 81      | Jordan                 | 0.32        | 0.25         | 0.57         |
| 82      | Vietnam                | 0.00        | 0.14         | 0.14         |
| 83      | Kenya                  | 0.03        | 0.01         | 0.04         |
| 84 85   | Egypt Yemen            | 0.33 0.00   | 0.56 0.01    | 0.88 0.01    |
| 86      | Monaco                 | 0.00        | 0.00         | 0.00         |
| 87      | Costa Rica             | 0.00        | 0.01         | 0.01         |
| 88      | St. Vincent            | 1.30        | 2.59         | 3.89         |
| 89      | Myanmar                | 0.00        | 0.00         | 0.00         |
| 90      | Guersney               | 0.05        | 2.98         | 3.03         |
|         | Zambia                 |             | 0.01         | 0.01         |
| 91 92   | Morocco                | 0.00 0.26   | 0.39         | 0.65         |
| 93      | Colombia               | 1.00        | 1.25         | 2.24         |
| 94      | British Isles          | 0.00        | 0.06         | 0.06         |
| 95      | Virgin Islands(US)     | 0.78        | 0.00         | 0.78         |
| 96      | Peru                   | 0.00        | 0.01         | 0.01         |
| 97      | Uganda                 | 0.00        | 0.88         | 0.88         |
| 98      | Seychelles             | 5.12        | 2.59         | 7.70         |
| 99      | Ghana                  | 1.48        | 0.00         | 1.48 0.10    |
| 100 101 | Togolese Republic Iraq | 0.03        | 0.07         |              |
| 102     | Belize                 | 0.00 0.00   | 0.00 0.04    | 0.00 0.05    |

| 103   | Barbados          | 0.00      | 0.00      | 0.00      |
|-------|-------------------|-----------|-----------|-----------|
| 104   | Bermuda           | 14.11     | 3.45      | 17.57     |
| 105   | Botswana          | 0.00      | 1.82      | 1.82      |
| 106   | Anguilla          | 0.00      | 0.00      | 0.00      |
| 107   | St. Lucia         | 0.00      | 0.09      | 0.09      |
| 108   | Trinidad &Tobago  | 0.00      | 0.11      | 0.11      |
| 109   | SENEGAL           | 0.00      | 0.00      | 0.00      |
| 110   | MOZAMBIQUE        | 0.00      | 0.00      | 0.00      |
| 111   | SAMOAISLANDS      | 7.44      | 10.10     | 17.54     |
| 112   | TAJIKISTAN        | 0.29      | 0.45      | 0.74      |
| 113   | Lithuania         | 0.00      | 0.33      | 0.34      |
| 114   | Ivory Coast       | 0.00      | 0.00      | 0.00      |
| 115   | Algeria           | 0.00      | 0.00      | 0.00      |
| 116   | Swaziland         | 0.00      | 0.00      | 0.00      |
| 117   | Brunei Darussalam | 0.00      | 0.09      | 0.09      |
| 118   | Fiji Island       | 0.00      | 0.04      | 0.04      |
| 119   | TURKMENISTAN      | 0.00      | 0.00      | 0.00      |
|       | Grand Total       | 16,239.13 | 29,442.45 | 45,681.57 |

*****