Fresh impetus for Make in India to garner more investment
In a bid to give fresh impetus to the signature ‘Make in India’ programme and garner more investments, the industry ministry has chalked out a set of action points for the current fiscal.business Updated: Jul 08, 2016 23:35 IST
In a bid to give fresh impetus to the signature ‘Make in India’ programme and garner more investments, the industry ministry has chalked out a set of action points for the current fiscal.
According to sources, Department of Industrial Policy & Promotion (DIPP) secretary Ramesh Abhishek during a recent closed-door meeting with the representatives of the industry, and state and central government, discussed the plan, including the steps that have already been initiated and how best they can be refined for investment promotion activities across the globe.
Sources said these steps are aimed to ease the investors’ concerns and help in reducing the time taken to convert the plans of investment into actual investment on the ground.
The action points include -- urging all the central ministries and the departments to work closely with the DIPP for seamless coordination within the government. Source said that the actions are aimed at reducing the time taken within the bureaucratic clearances, which can expedite the projects.
Already, all the departments in the government have allocated a “Make in India in-charge to one of their officers, but the DIPP feels that there needs to be coordination between the offices as well”.
The ministry has sought for higher participation from the domestic industry and states as well to ensure the success of investment promotion activities and events.
Sources said the plan also includes asking foreign missions, India’s ambassadors to foreign countries and industry associations abroad, to publicise investment opportunities, and connect with the investors by guiding them to the exact state and the prospects keeping in mind their requirements and needs. These missions should play a crucial part in investment promotion through various activities and outreaches, which will be conducted time to time, it was suggested.
The DIPP plans to suggest foreign investors the focus areas and the policy benefits, which they can avail.
“A key point, which was discussed at length was that both the state and the central government should enhance the parameters for getting in further ease in doing business, and asking the investment promotion body -- Invest India -- to help in facilitating investment and hand-holding of investors,” sources said.
Even though India has seen a huge growth in the foreign direct inflows -- rising to $55.46 billion in 2015-16 from $36.04 billion two years ago -- the data shows that a bulk of it did not go into manufacturing. During 2015-16, the three non-manufacturing sectors - services, computer software and hardware, and trading - attracted the major chunk of the FDI inflow, whereas core manufacturing sectors such as automobiles, chemicals, power, pharma and construction, got only about 10-15% of the FDI, according to the industry data.
The data also states that hotels and tourism, and telecommunications, were the other non-manufacturing areas that saw foreign investors pumping in money.