PLI is a big boost for 14 key manufacturing sectors, says Ministry
India is on track to attract US$100 billion Foreign Direct Investment (FDI) in the current Fiscal Year 2022-23, having secured US$83.6 billion in 2021-22 from 101 countries, the Ministry of Commerce and Industry said in a release on 24 Sept 2022.
It is confident of achieving the US$100 billion FDI target given by the backing of economic reforms and the Ease of Doing Business policies implemented in recent years.
The 2021-22 FDI was for 57 sectors in 31 Union Territories (UTs) and States, said the Ministry.
The increasing FDI is attributed to the eight-year-old ‘Make in India’ which is transforming the country into a leading global manufacturing and investment destination.
The initiative is an open invitation to potential investors and partners across the globe to participate in the growth story of ‘New India’.
Make In India has substantial accomplishments across 27 sectors. These include strategic sectors of manufacturing and services as well.
To attract foreign investments, the Government has put in place a liberal and transparent policy wherein most sectors are open to FDI under the automatic route.
Launched in 2020-21, the Production Linked Incentive (PLI) scheme across 14 key manufacturing sectors is a big boost to Make in India initiative.
The PLI Scheme incentivises domestic production in strategic growth sectors where India has comparative advantage. This includes strengthening domestic manufacturing, forming resilient supply chains, making Indian industries more competitive and boosting the export potential.
The Scheme is expected to generate significant gains for production and employment, with benefits extending to the MSME eco-system.
Recognising the importance of semiconductors in the world economy, the Government has launched a US$10 billion incentive scheme to build a semiconductor, display and design ecosystem in India.
To strengthen Make in India initiative, several other measures have been taken by the Government, such as amendments to laws, liberalization of guidelines and regulations.
In order to reduce unnecessary compliance burden, work in progress to bring down cost and enhance the ease of doing business in India.
Burdensome compliances to rules and regulations have been reduced through simplification, rationalisation, decriminalisation and digitisation, making it easier to do business in India.
Additionally, Labour reforms have brought flexibility in hiring and retrenchment.
Quality control orders have been introduced to ensure quality in local manufacturing.
Steps to promote manufacturing and investments also include reduction in corporate taxes, public procurement orders and Phased Manufacturing Programme, explained the Ministry.
To promote local industry by providing them preference in public procurement of Goods, Works and Services, the Public Procurement (Preference to Make in India) Order 2017 was also issued pursuant to Rule 153 (iii) of the General Financial Rules 2017, as an enabling provision.
The policy aims at encouraging domestic manufacturer’s participation in public procurement activities over entities merely importing to trade or assemble items.
The policy is applicable to all Ministries or Departments or attached or subordinate Offices or autonomous body controlled by the Government of India and includes Government companies as defined in the Companies Act.
Further, the National Single Window System (NSWS) has been soft-launched in September 2021 to improve the ease-of-doing-business by providing a single digital platform to investors for approvals and clearances.
This portal has integrated multiple existing clearance systems of the various Ministries, Departments of Government and the State Governments to enhance the investor experience.
The Government has also launched programme for multimodal connectivity to manufacturing zones in the country, called the Prime Minister’s Gatishakti programme, which will ensure logistical efficiency in business operations through the creation of infrastructure that improves connectivity.
This will enable faster movement of goods and people, enhancing access to markets, hubs, and opportunities and reducing logistics cost.
The One-District-One-Product (ODOP) initiative is another manifestation of the ‘Make in India’ vision for facilitating promotion and production of the indigenous products from each district of the country and providing a global platform to the artisans and manufacturers of handloom, handicrafts, textiles, agricultural and processed products, thereby further contributing to the socio-economic growth of various regions of the country.
There are several trends that mark a shift in Indian manufacturing, which includes increase in domestic value addition and local sourcing, a greater focus on R&D, innovation and sustainability measures.
The Make in India initiative has been striving to ensure that the business ecosystem in the nation is conducive for investors doing business in India and contributing to growth and development of the Nation.
This has been done through a range of reforms that has led to increased investment inflows as well as economic growth.
With this initiative at the forefront, the businesses in India are aiming that the products that are ‘Made in India’ are also ‘Made for the World,’ adhering to global standards of quality. fiinews.com
