NEW INITIATIVES

Advantage India
  • Attracted highest ever FDI inflow of US$ 67.54 bn during April to December 2020 (highest ever for the first ninth months of the financial year 2020-21)  
  • India’s real GDP to record a growth of 11% in 2021-22 and nominal GDP by 15.4 per cent-the highest since independence.
  • India to have a Current Account Surplus of 2% of GDP in FY21, A Historic High After 17 Years 
  • India to Become the Fastest Growing Economy in Next Two Years as Per IMF.
  • India jumps 79 positions from 142nd (2014) to 63rd (2019) in 'World Bank's Ease of Doing Business Ranking 2020'
  • India jumps 4 positions and ranks 48th in the Global Innovation Index 2020 rankings
  • For the first time ever, India’s merchandise exports rose 58% to $34.0 bn in Mar 2021 vis-à-vis $21.49 bn in Mar 2020 
  • From just 2 mobile phone factories in 2014, India now has become the 2nd largest mobile phone producer in the world.
  • India to become the fastest-growing economies in the world by 2023-24.
  • The population of India is expected to rise from 121.1 cr to 152.2 cr during 2011-36 an increase of 25.7% in twenty-five years.
  • Goods and Services Tax (GST), the biggest tax reforms since independence, paves way for a common national market by integrating various indirect taxes.
New Infrastructure

Drive economic growth and improve the quality of life of citizens by enabling industrial and urban infrastructure development

Industrialization and Urbanization

  1. Industrial Corridors and 21 new nodal Industrial Cities to be developed:
    • Delhi-Mumbai Industrial Corridor (DMIC)
    • Chennai-Bengaluru Industrial Corridor (CBIC)
    • Bengaluru-Mumbai Economic Corridor (BMEC)
    • Vizag-Chennai Industrial Corridor (VCIC)
    • Amritsar Kolkata Industrial Corridor (AKIC)

    These 21 new nodal cities will be having advantages like; Large land parcels, Planned communities, ICT enabled infrastructure, Sustainable living, Excellent connectivity- Road, Rail etc.

    Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 100 billion with financial and technical aids from Japan, covering an overall length of 1,483 km. Dedicated Freight Corridor (DFC) of 1504 km as the backbone, DMIC will intersect 7 states namely Delhi, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra

  2. Doubling of Network of Roads by 2020 and Construction of 15,000 km new roads by 2017 is targeted under various projects
  3. Railway projects such as Setting up of New Railway Stations, Mordernisation of Rolling stock, High Speed Railways, Port Mine connectivity etc. have been initiated for Modernising and better connectivity of Indian Railways.
  4. Eastern Dedicated Freight Corridor of 1840 km length and Western Dedicated Freight Corridor of 1504 km length is under construction as well as many projects are under planning stage.
  5. Sagar Mala project is started by the Govt. of India to modernize India's Ports and Inland waterways so that port-led development can be augmented and coastlines can be developed to contribute in India's growth, providing a project outlay of  $10 Bn
  6. The Smart Cities Mission having a project outlay of  $7.69 Bn is progressing, with Special Purpose Vehicles for 19 cities already set up.
  7. Aviation industry with target of becoming 3rd largest by 2030 and to cater international and domestic traffic.

New Design, Innovation and R&D

Investment in innovation and R&D offers large payoffs in terms of economic growth and competitiveness in global economy

  1. 3rd largest tech driven Start-up ecosystem globally and Tech Startups in India are expected to reach 11,500 in 2020 from 4,300 in 2015
  2. “Start-up India” initiative was launched aiming at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive for growth of Start-ups.
  3. Intellectual Property Rights Policy launched in May 2016 is having salient features:
    • Strong TRIPS compliant policy framework, Ease of Access using World-class IT enabled patent offices
    • Internationally acclaimed systems for International Searching and Preliminary Examination of patent applications
    • Augmentation of Manpower: 721 additional technically competent Patent Examiners appointed
    • Time for examination of patents to come down to 18 months from 7 years by March, 2018
    • Time for examination of trademarks to come down to 1 month from 13 months by March, 2017
New Process

Ease of Doing Business

Improved business processes and procedures open up new avenues of opportunities and create confidence among entrepreneurs as a result of which India moved up 12 places in the World Bank’s Doing Business ranking 2016 released in October, 2015

  • Incorporation of a company reduced to 1 day instead of 10 days
  • Power connection provided within a mandated time frame of 15 days instead of 180 days
  • No. of documents for exports and imports reduced from 11 to 3
  • Validity of industrial license extended to 7 years from 3 years
  • Bankruptcy Code 2015 – New bankruptcy law, providing for simple and time-bound insolvency process to be operational by 2017
  • Goods and Services Tax – Single tax framework by April, 2017
  • Permanent Residency Status for foreign investors for 10 years

Other Reforms

  1. Online portals for Employees State Insurance Corporation (ESIC) and Employees Provident Fund Organization (EPFO) for
    • Real-time registration
    • Payments through 56 accredited banks
    • Online application process for environmental and forest clearances
  2. Department of Commerce, Government of India has launched Indian Trade Portal. Important feature of this portal is to be a single point for relevant information on measures other than tariff called the non-tariff measures like standards, technical regulations, conformity assessment procedures, sanitary and Phytosanitary measures which may affect trade adversely.
  3. An Investor Facilitation Cell has been created in ‘Invest India’ to guide, assist and handhold investors during the entire life-cycle of the business.
  4. The Department of Industrial Policy and Promotion has also set up Japan Plus and Korea Plus. They are special management teams to facilitate and fast track investment proposals from Japan and South Korea respectively.
New Sectors

Major FDI Reforms

FDI stimulates a country’s economic development and creates a more conducive environment for the industry to grow

  1. Defence: Up to 74% under automatic route and above 74% through Government route
  2. Civil Aviation: 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route beyond 74% for Brownfield Projects is under government route.
  3. Broadcasting: New sectoral caps and entry routes are as under:
    • Broadcasting Carriage Services & down-linking of news channels: 100% FDI
    • Broadcasting Content Service: Terrestrial Broadcasting FM (FM Radio) and Up-linking of ‘News & Current Affairs’ TV Channels have 100% FDI under the Government route. Uploading/Streaming of News & Current Affairs through Digital Media has 26% FDI under Government Route and Up-linking of Non- ‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels has 100% FDI under Automatic Route. 
    • Print Media has 26% FDI under Government Route
  4. Banking: FDI up to 74% with 49% under automatic route rest through government route
  5. Railways: 100% FDI under automatic route permitted in construction, operation and maintenance of Rail Infrastructure projects
  6. Construction: 100% FDI through automatic route and Removal of minimum floor area & minimum capital requirement
  7. Pharmaceuticals: The extant FDI policy on the pharmaceutical sector provides for 100% FDI under automatic route in Greenfield pharma and FDI up to 74% under automatic route and 100% under government approval in brownfield pharma.
  8. Plantation: Certain plantation activities namely; coffee, rubber, cardamom, palm oil tree and olive oil tree plantations has opened for 100% foreign investment under automatic route.
  9. Agriculture and Animal Husbandry: 100% FDI through automatic route
  10. Telecom: FDI up to 100% with 49% under automatic route
  11. Insurance & Pension: FDI Policy has been reviewed to increase the sectoral cap of foreign investment from 26% to 49% with foreign investment up to 26% to be under automatic route.
  12. Medical Devices: 100% FDI under automatic route for manufacturing of medical devices has been permitted.
  13. E-Commerce: 100% FDI in B2B e-commerce, Single brand retail trading entity permitted for B2C e-commerce and e-commerce food retailing
  14. Retail: 100% FDI and 49% under automatic route are allowed. In case of ‘state-of-art and ‘cutting-edge technology,’ sourcing norms can be relaxed subject to Government approval.
    • 100% FDI is now permitted under automatic route in Duty Free Shops located and operated in the Customs bonded areas.
  15. Mining: 100% FDI through automatic route and Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities under 100% Government Route. 
  16. Petroleum and Natural Gas: 100% FDI through automatic route and Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs with 49% automatic route. 

 

 

Achievement Report

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