Diversification of Industries

Diversification of Industries

The Union Government is promoting industrial development across the country, including areas with low industrialisation through schemes like Special Package Scheme, North East Industrial and Investment Policy (NEIIP) 2007, Freight Subsidy Scheme (FSS) 2013, Industrial Infrastructure Upgradation Scheme (IIUS) and Indian Leather Development Programme (ILDP).

Further, in order to incentivize industrial growth across the country, the Government is promoting Industrial Corridors as follows:-

(a). Delhi-Mumbai Industrial Corridor (DMIC)

(b). Chennai-Bengaluru Industrial Corridor (CBIC)

(c). Bengaluru-Mumbai Economic Corridor (BMEC)

(d). Vizag-Chennai Industrial Corridor (VCIC)

(e). Amritsar-Kolkata Industrial Corridor (AKIC)

Under DMIC, seven nodes have been identified in the first phase, which are as under:-

(i) Ahmedabad-Dholera Special Investment Region, Gujarat

(ii) Shendra - Bidkin Industrial Park, Maharashtra

(iii) Integrated Industrial Township, Vikram, Udyogpuri, Madhya Pradesh

(iv) Integrated Industrial Township, Greater Noida, Uttar Pradesh

(v) Manesar - Bawal Investment Region, Haryana

(vi) Pithampur – Dhar – Mhow Investment Region, Madhya Pradesh

(vii) Khushkhera – Bhiwadi – Neemrana Investment Region, Rajasthan

Under CBIC, following three nodes have been identified:-

(i) Ponneri, Tamil Nadu

(ii) Tumkur, Karnataka

(iii) Krishnapatnam, Andhra Pradesh

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today. 

*****

Slump in Manufacturing Sector 

Growth rate of the Gross Value Added (GVA) at Basic Price at constant (2011-12) prices in manufacturing sector was 5.3 % in 2013-14 and 7.1 % in 2014-15. During April-September, 2015-16, it has shown a growth of 8.2 %. Thus, there is no decline in the growth of manufacturing sector.

The Government has initiated a vast number of measures including the Make in India initiative, opening up the FDI regime and enhancing Ease of Doing Business to drive manufacturing, innovation and design in India.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today. 

*****

e-NIVESH 

Project Motoring Group in Cabinet Secretariat has set up an online digital platform (e-Nivesh) through which it proposes to monitor 88 different types clearances/approvals granted by various Central Government Ministries/Department. The exact number of clearances required by an investor depends on a number of factors including investment in plant & machinery, member and class of employees and the sector concerned.

Out of the 88 clearances, 83 clearances have been digitized and 4 clearances in respect of Ministry of Defence and Ministry of Home Affairs are not proposed to be digitized due to security reasons. Digitization of the remaining one clearance will be carried out in the next financial year i.e. 2016-17. In addition to the above mentioned 88 clearances, 5 clearances are available on the portal of Department of Industrial Policy and Promotion.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today. 

*****

FDI in flow 

            The total Foreign Direct Investment (FDI) including Non-Resident Indian (NRI) investments during the last three years and the current financial year (up to September, 2015) is as under:

Sl. No.	Financial Year	Total FDI inflow (in US$ million)
1	2012-13 (P)	34,298
2	2013-14 (P)	36,046
3	2014-15 (P)	44,291
4	2015-16 (P) (up to September, 2015)	24,409

                        P – Provisional

Government does not fix targets for FDI inflows as FDI is largely a matter of private business decisions. 

            Data in this regard is not maintained centrally. Investment by foreign companies in the country is governed by the FDI policy as well as the sectoral laws, regulations and policies.

            In November, 2015 a global consultancy firm namely Ernst & Young (EY) India conducted the India Attractiveness Survey 2015, where they had taken responses of 505 investors on three most attractive markets for investment.  On the basis of response received from these investors and data provided by FDI Markets (a service of The Financial Times Limited), India ranked number one FDI destination in the world during the 1^st half of 2015.

            Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), including investments from Non-Resident Indians (NRIs), where most of the sectors are open to FDI under the automatic route. The extant policy allows special dispensation for NRI investments in construction development and civil aviation sector. Further, investment made by Non-Resident Indians under schedule 4 of FEMA (Transfer or issue of Security by Persons Resident outside India) Regulations is deemed to be domestic investment at par with the investment made by residents. In order to attract larger investments, which are possible through incorporated entities only, the special dispensation of NRIs has been extended to companies, trusts and partnership firms, which are incorporated outside India and are owned and controlled by NRIs. Henceforth, such entities owned and controlled by NRIs will be treated at par with NRIs for investment in India.

            This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.