The government has taken various measures like production-linked incentive schemes and simplified policies to boost investments, trade and promote economic activities in the country, Commerce and Industry Minister Piyush Goyal said on Tuesday. India continues to open its economy to global investors by raising FDI limits, removing regulatory barriers, developing infrastructure and improving the business environment, the minister added.
To give impetus to foreign direct investment (FDI) inflows, the government has put in place an investor-friendly policy, where most of the sectors are open for 100 per cent FDI under the automatic route, he noted.
“The government initiatives are significant to increase investments and promote economic growth besides converting the disruption caused by COVID-19 into an opportunity for growth and investment,” Goyal said.
To ensure that India remains an attractive and investor-friendly destination, the government reviews FDI policy on an ongoing basis and makes changes from time to time after having intensive consultations with stakeholders.
The policy provisions have been progressively liberalised and simplified across various sectors like asset reconstruction companies, broadcasting, pharma, single-brand retail trading, power exchanges, e-commerce activities, and coal mining.
In order to further improve the ease of doing business ecosystem in the country, he said, the government coordinates with ministries, departments and states for initiatives to reduce compliance burden on citizen and business activities.
In order to have a continuous evaluation framework, the government started a reform exercise – Business Reforms Action Plan for the assessment of the business environment in the states and UTs.
The other initiatives include PLI schemes for 14 sectors, a national infrastructure pipeline, a national monetisation pipeline, India’s industrial land bank, a national single window system, and an industrial park rating system.
Talking about trade, the minister said the government is encouraging exporters to participate in the exhibitions and providing grants in aid under the market access initiative.
The 14 PLI schemes “have the potential of significantly boosting production, employment, increase manufacturing activities and contribute to economic growth over the next five years or so, thereby having the potential to change the manufacturing ecosystem in the country,” Goyal told PTI.
The government in 2021 announced PLI schemes for 14 sectors like telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore.