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Year End Review for Department for Promotion of Industry and Internal Trade

1. Industrial Performance:

 

Expansion of Industrial Production as indicated in trends of IIP:

Industrial production as measured by IIP expanded by 7.0% during April-September 2022 over the corresponding period last year. All three sectors — Mining, Manufacturing and Electricity recorded growth during the period.

Consistent recovery after COVID-19 pandemic:

• During 2020-21, when COVID-19 pandemic    spread and      Government had to impose nation-wide closure of industries to contain    its impact, Industrial output had declined considerably,       registering (-) 8.4% growth. Thereafter, industry shown consistent recovery. The cumulative rate of growth of IIP for the period April-Sept 2022 is 7.0%.
• The cumulative Index of Industrial Production surged by 11.4 percent during 2021-22. Mining, Manufacturing and electricity sector recorded double-digit growths during 2020-21. The recovery in industrial activity is further strengthened in 2022-23. Mining, Manufacturing and Electricity registered positive growth of 4.2%, 6.8% and 10.8% respectively during the first two quarters of 2022-23.

 

2. Trends in Growth of Eight Core Industries

 

• The Index of Eight Core Industries (ICI) measures the performance of eight core industries i.e. Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement and Electricity. The industries included in the ICI comprise 40.27 per cent weight in the Index of Industrial Production (IIP).
• During 2021-22, the ICI growth rate was 10.4 per cent compared to average growth rate of 0.5 per cent during last 3 years i.e. 2018-19 to 2020-21. The rate of growth has been robust during the current financial year (April to October, 2022-23) i.e. 8.2%. Out of Eight Core sectors, two have shown double digit growth with Coal and fertilizers sectors leading the pack with growth rates of 18.1% & 10.5% respectively. Whereas, Crude Oil sector growth remained muted in the same period i.e. (April to October, 2022-23). These indicate revival of core industries.

 

3. PM GatiShakti National Master Plan (NMP)

 

• The PM GatiShakti NMP is fully operation with over 1200 data layers of concerned Central Ministries/Departments and 755 essential layers of States/UTs
• Individual portals for 22 infrastructure and user economic ministries and all 36 States/UTs with necessary data layers, customized tools and functionalities have been developed.
• Training and Capacity building of over 1000 State level officers in physical mode at BISAG-N completed, apart from 6 zonal conferences.
• 78 Workshops for Central Ministries / Departments have been completed with around 3145 participants. 180+ officials from over 50 PSUs sensitized on PM GatiShakti National Master Plan.
• At national level, the institutional framework, i.e. The Empowered Group of Secretaries (EGoS), Network Planning Group (NPG) and Technical Support Unit (TSU) are fully operational. State & UTs have formed similar institutional framework and are holding meetings.
• 38 meetings of the NPG held, wherein 57 projects have been examined. In addition, user ministries have shared 197 critical infrastructure gaps pertaining to road, rail and port connectivity. These have been examined by the NPG. 
• Online course on PM GatiShakti hosted on iGoT platform to build capacities within the Government.
• Resolution of issues for time bound project implementation has gained momentum through the Project Monitoring Group (PMG) mechanism. 1500+ issues resolved related to 300+ projects since the inception of PM GatiShakti.
• 28 States have submitted their Annual Action Plans. Plans of all States worth Rs. 5023 crores recommended to DoE.
• 15 States have developed Logistics policy. State of Karnataka and Punjab notified their logistics policy in the month of November

 

4. Logistics:

 

• National Logistics Policy : National Logistics Policy (NLP) has been launched by PM on 17.09.2022. The Policy lays down an overarching interdisciplinary. cross-sectoral, multi-modal jurisdictional and comprehensive policy framework for the Logistics Sector. The Policy complements the PM GatiShakti National Master Plan.
• Unified Logistics Interface Platform: Unified Logistics Interface Platform (ULIP) was launched by Prime Minister Shri Narendra Modi, as part of the 'National Logistics Policy (NLP)' on September 17, 2022 with the vision of PM GatiShakti which aims at breaking individual silos, promote integration among various  Ministries/Departments and create a single window thus bringing efficiency and transparency in the logistics industry and thus making India cost competitive  and “Atmanirbhar” and “Make in India” initiatives in the logistics sector.  The integration of ULIP, with 32 systems of 07 different ministries through 100+ APIs, covering 1600+ fields has been completed successfully. ULIP has been designed and developed by NICDC under the guidance of Niti Aayog.
• Ease of Logistics Services Platform (ELoGs) Ease of Logistics Services Platform (ELoGs) was launched by Prime Minister Shri Narendra Modi, as part of the 'National Logistics Policy (NLP). on September 17, 2022. Companies can raise grievances on the ELoGS platform and that will be taken up by the concerned authorities on priority basis.
• Logistics Ease Across Different States (LEADS): National Workshop on PM GatiShakti was organized on 13th October 2022 during which the Logistics Ease Across Different States (LEADS) 2022 report was released by Union Minister of Commerce and Industry.

 

5. Production Linked Incentive (PLI) Schemes

 

• Keeping in view India’s vision of becoming ‘Atmanirbhar’, Production Linked Incentive (PLI) Schemes for 14 key sectors were announced with an outlay of Rs. 1.97 lakh crore to enhance India’s Manufacturing capabilities and Exports.
• PLI Scheme across these key specific sectors is poised to make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global value chain.
• With the announcement of PLI Schemes, significant creation of production, employment, economic growth and exports is expected over the next five years and more.
• PLI scheme is going to have a cascading effect on the country’s MSME ecosystem. The anchor units that will be built in every sector will require a new supplier base in the entire value chain. Most of these ancillary units will be built in the MSME sector.
• Key Achievements

 

• • As on date, 650 applications have been approved under 13 Schemes.
  • More than 100 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Telecom, White Goods and Food Processing.
  • As per recent reporting from implementing Ministries/ Departments, around Rs. 47,000 crore (US$ 5.6 billion) of actual investment has been made; production/ sales of Rs. 3.75 lakh crore (US$ 45 billion) of eligible products and employment generation of around 2.5 lakhs has been reported.
  • 106% achievement of actual investment reported versus the corresponding projections of FY 2021-22.
  • Key sectors such as Large Scale Electronics Manufacturing, Pharmaceuticals, Telecom & Networking Products, Food Processing and White Goods have contributed in achieving considerable amount of investment, production/ sales and employment.
  • To promote the entire value-chain in telecom manufacturing, Design-led PLI was launched in June, 2022 to build a strong ecosystem for 5G as part of the PLI Scheme for Telecom & Networking products. Approvals under this Scheme have already been granted to eligible companies.
  • In September 2022, the Cabinet has recently approved PLI Scheme (Tranche II) on ‘National programme on High Efficiency Solar PV Modules’, with an outlay of Rs. 19,500 crore to build an ecosystem for manufacturing of high efficiency solar PV modules in India, and thus reduce import dependence in the area of Renewable Energy.
  • To encourage and incentivize the use of Millets in RTC/ RTE Products, GoI has recently approved 30 companies for availing sales-based incentives under PLI Scheme for Millet-based products from Large Entities and MSMEs.
  • First Disbursement of Rs. 53.28 crore approved under PLI Scheme for Mobile manufacturing & Specified Electronic components.

 

• Production Linked Incentive (PLI) Scheme for White Goods (ACs and LED Lights):

 

Union Cabinet Chaired by Prime Minister has given approval for the PLI Scheme for White Goods (Air Conditioners and LED Lights) on 7th April, 2021 with an outlay of Rs. 6,238 crore. The Scheme Guidelines were published on 4th June, 2021. The scheme is expected to be instrumental in achieving growth rates that are much higher than existing ones for AC and LED industries, develop complete component eco-systems in India and create global champions. Altogether 64 applicants with committed investment of Rs. 6,766 crore have been selected as beneficiaries under the scheme. The selected applicants include 34 for manufacturing of Air-conditioners' components with committed investment of Rs. 5,275 crore and 30 for manufacturing of components of LED Lights with committed investment of Rs. 1,491 crore.

 

6. Project Monitoring Group (PMG)

 

• As of December 2021, the PMG portal has been upgraded from an issue-based resolution mechanism to a Milestone-based monitoring system as per the directives of the Cabinet Secretary. The new system will ensure proactive monitoring of projects and will help in initiating course correction measures in time. This will put the Project Monitoring Group at the forefront of driving transformational change in the infrastructure space.
• Till date, PMG has monitored 1912 projects with investment of ~ Rs 64 lakh crores. These include all important mega infrastructure projects including high impact GatiShakti projects and critical infrastructure gap projects. Out of these, 294 projects with investment of ~ Rs 7.23 lakh crores have been added since January 2022.
• PMG has facilitated resolution of 5,438 issues till date. Out of these, 1548 issues pertaining to 353 projects with investment of ~ Rs 16.2 lakh crore have been resolved since January 2022. 
• PMG is also helping facilitate resolution for Private Sector Projects. Since 01st January 2022, 69 issues pertaining to 21 private sector projects have also been resolved through PMG mechanism.

 

7. Industrial Corridor Programme

 

• Industrial Corridor Projects
• 04 projects appraised by NICDIT and being taken up for further approval from HCIM/ CCEA for implementation -
• IMC at Khurpia Farm, Uttarakhand
• IMC at Rajpura-Patiala, Punjab
• Bhimnath - Dholera Rail Connectivity, Gujarat
• Zaheerabad Node under Hyderabad Nagpur Industrial Corridor (HNIC), Telangana
• Inclusion of projects under NICDIT’s mandate –
• Mandal Bechraji Investment Region (MBIR), Gujarat node under DMIC
• BaddiBarotiwalaNalagarh (BBN) IMC, Himachal Pradesh under AKIC
• Major Trunk Infrastructure –
• Completed – Shendra Bidkin Industrial Area
• In progress –
• Dholera Special Investment Region (DSIR) – 95%,
• IMLH, NC, Haryana - External connectivity for road, power, water – 50% & Rail connectivity works by DFCCIL
• Krishnapatnam & Tumakuru Nodes – EPC Tenders under finalization
• Environment Clearance –
• Krishnapatnam & Tumakuru Nodes
• CRZ clearance received for development of 3400 MW Solar Park at DSIR, Gujarat
• Dighi Port Industrial Area
• 04 SHAs/ SSAs executed –
• Jodhpur Pali Marwar Investment Area (JPMIA) & Khuskheda Bhiwadi Neemrana Investment Region (KBNIR), Rajasthan
• Dighi Port Industrial Area (DPIA), Maharashtra
• IMC at Rajpura-Patiala, Punjab
• IMC at Khurpia Farm, Uttarakhand
• 02 SPVs incorporated for development of Industrial Corridor Projects -
• IMC at Palakkad, Kerala
• JPMIA & KBNIR, Rajasthan
• 09 consultants have been appointed for Master Planning and Preliminary Engineering activities
• A total of 209 Plots (1172 Acre) allotted in these 4 cities attracting investments from companies of South Korea, Russia, China, UK, Japan as well as from India including MSME`s.
• 84 Plots allotted with 450.5 acres and investment to the tune of ~Rs. 3,182 Cr. secured with ~11,280 employment generation capacity.
• Approval of $250 million loan from Asian Development Bank (ADB) as part of first subprogram of the programmatic $500 million loan to develop 11 Industrial Corridors on 29th Oct, 2021.
• Investor Round Table Conferences organised at Delhi (April,22), Kochi (June, 22) and Gandhinagar (Aug, 22).

 

8. Start-up India Programme:

 

• Launched by the Prime Minister on 16th January 2016, Startup India Initiative has today evolved into the launchpad for ideas to innovation in the country. Several programs have been implemented over the years under Startup India initiative with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators rather than job seekers.
• From facilitating access to capital, filings for protection of intellectual property rights, tax incentives, easing of public procurement, enabling regulatory reforms to access to international fests, all efforts are being made by the Government and ecosystem at large in making Indian startup ecosystem, best in the world.
• In the past few years, the Indian startup ecosystem has seen rapid growth and development in all aspects. It is a noteworthy achievement that more than 84,000 startups have been recognized by the Government which have reported creation of more than 8.5 lakh jobs with an average of 11 jobs created by a recognised startup. The recognized startups are spread across 662 districts of the country with at least one from all of 36 States and UTs.
• Under the Fund of Funds for Startups (FFS) Scheme, the Government has committed about Rs. 7,528 crore to 93 Alternative Investment Funds (AIFs). A total of Rs. 13,493 crore has been invested by the AIFs in 773 startups.
• Under the Startup India Seed Fund Scheme (SISFS), a total sum of Rs. 455.26 crore has been approved to 119 incubators. Also, the selected incubators have approved a total of Rs. 104.76 crore to 656 startups.
• The Government e Marketplace (GeM) portal has become a one-stop solution for online procurement of common-use goods and services required by various Government Departments / Organizations / PSUs. Over 15,665 DPIIT recognised startups have been on-boarded on GeM which have received over 1,60,062 orders from public entities, totalling more than Rs. 9,512 crore. Startup Highway is a fast track process for onboarding of Startups on the GeM platform.
• 53 key regulatory changes to enhance ease of doing business, raising capital and reducing compliance burden for the startup ecosystem have been undertaken by the Government.
• Recognized startups are eligible to claim angel tax exemption under Section 56(2)(viib) of the Income Tax Act.
• Insurance companies and provident funds can invest in AIFs/ Fund of Funds enhancing pool of domestic capital.
• Foreign Venture Capital Investor (FVCI) may contribute up to 100% of capital through automatic route.
• Tax holiday for recognized startups for 3 consequent assessment years out of 10 years.
• Promoting protection and commercialisation of Intellectual Property Rights (IPR), 510 patent facilitators and 392 trademark facilitators have been empanelled by the Government to provide free-of-charge services startups.  Over 2,100 startups have filed for expedited examination for patent applications, of which more than 994 patents have been granted and 1,923 have been issued the First Examination Report. 27,225 Trademark applications have been filed of which 12,827 trademarks have been registered.
• The Government has also notified the establishment of the Credit Guarantee Scheme for Startups (CGSS) for providing credit guarantees to loans extended by Scheduled Commercial Banks, Non-Banking Financial Companies and AIFs.
• Under Startup India initiative, bridges with 15 countries have also been established to provide a soft-landing platform for startups from India and partner nations for cross collaboration and knowledge exchange

 

9. Make in India

 

DPIIT has been at the forefront of supporting the manufacturing and investment ecosystem in the country. “Make in India” was launched on September 25, 2014, to facilitate investment, foster innovation, building best in class infrastructure, and making India a hub for manufacturing, design, and innovation. The development of a robust manufacturing sector continues to be a key priority of the Indian Government.

It was one of the first 'Vocal for Local' initiatives that exposed India's manufacturing domain to the world. The sector has the potential to not only take economic growth to a higher trajectory but also to provide employment to a large pool of our young labour force.

Since its launch, Make in India has made significant achievements and is now focusing on 27 sectors under Make in India 2.0. DPIIT is coordinating Action Plans for 15 manufacturing sectors, while the Department of Commerce is coordinating for 12 service sectors. Now, DPIIT is working closely with 24 sub-sectors which have been chosen keeping in mind the Indian industries strengths and competitive edge, need for import substitution, potential for export and increased employability. These 24 sub-sectors are – furniture, air-conditioners, leather and footwear, ready to eat, fisheries, agri-produce, auto components, aluminum, electronics, agrochemicals, steel, textiles, EV components and integrated circuits, ethanol, ceramics, set top boxes, robotics, televisions, close circuit cameras, toys, drones, medical devices, sporting goods, gym equipment. Efforts are on to boost the growth of the sub-sectors in a holistic and coordinated manner.

Investment outreach is being done through Ministries, State Governments and Indian Missions abroad; Investment Identification of potential investors, handholding and investment facilitation is done through Invest India.

 

10. IPR Strengthening

DPIIT has worked closely with NITI Aayog towards improving India’s rank in Global Innovation Index (GII). The continuous efforts have yielded jump in India’s ranking over the years.

Out of 81 indicators of GII 09 indicators related to IPR are assigned to DPIIT. Additionally, pursuant to the 3rd meeting of the Inter-Ministerial Coordination Committee to improve India's position in the Global Innovation Index ranking 01 indicator pertaining to investment inflow has been assigned to DPIIT

DPIIT is continuously making efforts towards streamlining and improving the scores of the indicators assigned to it. DPIIT has taken several initiatives to improve the Domestic IPR filings including patents, trademarks and Industrial Designs corresponding to assigned indicators.

DPIIT is conducting various stakeholder consultations to identify and resolve concerns and issues being faced by stakeholders so as to reduce the compliance burden and streamlining the procedure. Said initiative would further strengthen the IP ecosystem of the country and would boost IP filings by the stakeholders.

Further, to strengthen the IP ecosystem and based on the feedback of stakeholders, currently the department has proposed amendments in its different IP legislations and for some of these the amendments are under parliamentary procedure.

DPIIT is also conducting various awareness and promotional activities for the protection and commercialization of IPRs.

Additionally, DPIIT is continuously monitoring that the data pertaining to GII indicators as sought from the relevant National Sources is updated/reflected on the International Sources.

Also, the 15th edition of GII 2022 ranking has been released on 29th September, 2022. India’s rank in the Global Innovation Index (GII) has improved from 81^st in 2015 to 40^th in GII 2022 report.

 

11. Investment Clearance Cell:

 

In coordination with various Ministries/ Departments of Government of India & States/ UTs, DPIIT and Invest India have been working on the NSWS since 2020-21. The portal [www.nsws.gov.in] was soft-launched on 22^nd September, 2021 by Commerce & Industry Minister. Currently, approvals of 24 Ministries/ Departments and 16 States’/ UTs’ Single Window Systems have been on-boarded on the NSWS Portal. As on date, 226 approvals pertaining to various Ministries/ Departments have been integrated with NSWS. With this, India’s ranking on ease of doing business will substantially improve, if World Bank were to resume its rankings in DBR report. As on date, 26 central Ministries/Departments and 31 States/UTs have onboarded their Know Your Approvals (KYA) module on the portal. Also, as on date more than 34000 investor related approval have been granted through NSWS portal.

 

12. Ease of Doing Business:

DPIIT is spearheading multiple initiatives for improving overall business regulatory environment in the country. This is evident from the unprecedented 79 rank jump in World Bank’s Doing Business Report in 5 years (from 142^ndin 2014 to 63^rdin 2019), implementation of reforms by States & UTs as part of Business Reforms Action Plan (BRAP) and systematic reduction/simplification of compliances on businesses and citizens with a special focus on decriminalization of existing Acts/Rules.

The assessment of BRAP 2020 (fifth edition) was released on 30^thJune 2022 and based on the implementation of reforms, States/UTs were placed into four categories – Top Achievers, Achievers, Aspirers and Emerging Business Ecosystems. As a landmark achievement, 7496 reforms were implemented across States and UTs as part of BRAP 2020 assessment, thereby significantly enhancing Ease of Doing Business across the country.

Reducing Compliance Burden (RCB) on businesses and citizens is a continuous exercise to leapfrog to the next level of governance excellence and improve Ease of Living. More than 39,000 compliances have been reduced by Ministries and States/UTs. The objective of this exercise is to improve Ease of Doing Business and Ease of Living through:

 

• Simplification of procedures related to applications, renewals, inspections, filing records, etc. The process and data forms need to be user friendly to only capture minimum and necessary information
• Rationalization by repealing, amending or subsuming redundant laws
• Digitization of services and interfaces to the businesses and citizens by creating online platforms thereby eliminating manual forms and records. The National Single Window System (NSWS) by DPIIT is in the process of integrating the business services across the States/UTs. Similarly, for citizen services, Umang platform by MeitY integrated about 21840 pan India e-Gov services ranging from Central to Local Government bodies
• Decriminalization of minor technical and procedural offences under existing Acts/Rules to reduce the fear of imprisonment among businesses/citizens

 

DPIIT developed a new utility on the Regulatory Compliance Portal to capture data related to decriminalization of provisions under various Acts/Rules across Ministries and States/UTs. More than 3,400 provisions related to minor technical and/or procedural defaults are decriminalized by Ministries and States/UTs based on details uploaded on this portal.

 

Ease of Doing Business and Ease of Living (Amendment of Provisions) Bill, 2022 has been prepared by DPIIT, in consultation with M/o Law and Justice. The Bill is prepared based on inputs from respective Ministries to rationalize provisions across Central Acts. This Bill is one of the initial steps undertaken to ensure a ‘trust-based governance’. Some of the ways in which decriminalization of minor technical and procedural offences proposed in this Bill are:

 

• Removal of archaic provisions
• Removal/rationalization of imprisonment/fine for minor offences
• Introduction of compounding of offences
• Graded punishments (differential punishment for first/subsequent offences)

 

DPIIT has proposed decriminalization across six Acts – The Boilers Act, 1923, The Industries (Development and Regulation) Act, 1951, The Patents Act, 1970, The Trade Marks Act, 1999, The Geographical Indications of Goods Act, 1999 and The Copyright Act, 1957. Imprisonment and fine is proposed to be removed for offences such as making false statements/entries in the register (Copyright Act, 1957/Geographical Indications of Goods Act, 1999), improperly describing a place of business (Geographical Indications of Goods Act, 1999&Trade Marks Act, 1999), imprisonment has been removed but fine retained for violations such as failure to cause the register number allotted to be marked on the boiler (The Boilers Act, 1923) while fine has been converted to penalty for offences such as refusal or failure to supply information (Patents Act, 1970), etc.

 

13. National Single Window System (NSWS)

 

• Setting up of National Single Window System (NSWS) was announced in the Budget 2020-21 with the objective to provide "end to end" facilitation and support to investors. The cell was to operate through an online digital portal. National Single Window System (NSWS) [www.nsws.gov.in] was soft-launched on 22nd September, 2021 by Commerce & Industry Minister.
• Currently, the Know Your Approvals (KYA) Module, a pre-investment advisory is live with more than 4011 approvals across 32 States/UTs and 595 approvals across 32 Central Ministries/Departments. Further, 249 out of 376 approvals on-boarded across 27 Ministries/ Departments are enabled to be applied through the NSWS portal.
• 19 States’/UTs’ (namely: Andhra Pradesh, Bihar, Goa, Gujarat, Himachal Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Maharashtra, Nagaland, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, Haryana, Arunachal Pradesh, Tripura) Single Window Systems have been linked with the NSWS Portal thereby providing access to approvals of these States/UTs to be applied through NSWS.
• Using process optimization and technology, investing in India is slated to become easier for which various schemes like Vehicle Scrapping Scheme for 13 States (namely: Gujarat, Uttar Pradesh, Madhya Pradesh, Karnataka, Odisha, Andhra Pradesh, Assam, Rajasthan, Chandigarh, Bihar, Punjab, Goa & Uttrakhand), and Schemes under the Indian Footwear and Leather Development Programme (IFLDP) and approvals under Ethanol Policy are live on the portal. The investors are readily using NSWS to avail benefits under these schemes seamlessly on NSWS.
• Currently, the NSWS portal has about 3.7 lakh unique visitors including 54,000 plus active users. More than 44,000 approvals have been facilitated through NSWS, and another about 28,000 approvals are in process.
• NSWS is facilitating as a technology accelerator for establishing a single source of information for central and states approvals, schemes, registrations, clearances etc. for businesses across sectors, and size. Through a single unified application form, the investors are able to apply for multiple clearances and also monitor the status of their applications through the investor dashboard. The investors can also raise queries and grievances on the portal.
• NSWS will also fast-track implementation of Special Schemes such as Production Linked Incentive (PLI) Schemes for Sector-wise bundling of both Central & State Government approvals, Integration of all regulatory approvals/ clearances as well as renewals. Further, the National Land Bank has been integrated with the NSWS portal which enables the investors to get information of the land availability by the GIS-enabled portal. Currently 1 lakh hectares of land in different industrial parks and estates are available on NSWS.
• PAN number is being explored by NSWS as a unique identifier for Application Programming Interface (API) integration of data between ministries and states for euring single business user ID. NSWS also helps in reducing data duplication and filling same data in various forms using auto-population Module.
• NSWS is an ambitious initiative which promises to be the game changer for increasing investments and reducing compliance burden in the country. The system would lead to convergence of all Ministries/ Department and States/ UTs through the “whole of Government approach”.

 

14. Public Procurement (Preference to Make in India) Order, 2017

 

• The PPP-Mll Order gives preference to locally manufactured goods, works and

services in public procurement. thereby giving boost to industrial growth in the country and enhance income and job opportunity for its masses.

• Keeping in view the mandate of "Atmanirbhar Bharat", DPIIT has revised its Public Procurement (Preference to Make in India Order, 2017) on 16.09.2020 with the following salient features:

Ø Re-classification of suppliers-

I. Class- I local suppliers- More than 50 % local content

II. Class-II local supplier- 20-50% local content

III. Non- local supplier- Less than 20 % local content

Ø Purchase preference for Class-I local suppliers (suppliers with more than 50% local content).

Ø Suppliers offering items with less than 20% domestic local value addition can't participate in domestic/national bidding process.

Ø Nodal Ministries/ Departments have been authorized to notify higher minimum local content requirement for Class-I/ Class-II local suppliers i.e. higher than 50/20%.

Ø For purchases with estimated value less than Rs. 200 Crore, no Global tender enquiry will be issued.

• The Order is applicable for procurement of goods. services and works (including turnkey works) by all Central Ministries/ Departments, their attached/subordinate offices, autonomous bodies controlled by the Government of India and Government companies as defined in the Companies Act.

 

15. Foreign Direct Investment

 

India is one of the most attractive FDI destinations in the world today. The Government has put in place an investor friendly Foreign Direct Investment (FDI) policy under which most sectors except certain strategically important sectors are open for 100% FDI under the automatic route. India continues to open up its sectors to global investors by raising FDI limits, removing regulatory barriers for attracting increased investments, in addition to developing infrastructure and improving the business environment. In order to make India a more attractive investment destination, the Government since 2014 has implemented several radical and transformative FDI reforms across sectors such as Defence, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Pharmaceuticals, Single Brand Retail Trading, Construction & Development, Civil Aviation, Power Exchanges, e-commerce activities, Coal Mining, Contract Manufacturing, Digital Media, Insurance Intermediaries, etc. In the last one year alone, reforms in the FDI policy have been undertaken in sectors such as Insurance, Petroleum & Natural Gas and Telecom. Measures taken by the Government on FDI Policy reforms have resulted in increased FDI inflows in the country, which year after year is setting up new records.

 

FDI inflows in India stood at USD 45.15 billion in 2014-2015 and have continuously increased since then. FDI inflows increased to USD 55.56 billion in 2015-2016, USD 60.22 billion in 2016-2017, USD 60.97 billion in 2017-2018, USD 62.00 billion in 2018-19, USD 74.39 billion in 2019-20, USD 81.97 billion in 2020-21 and India registered its highest ever annual FDI inflow of USD 84.84 billion (provisional figures) in the financial year 2021-22.

• During the current financial year, 2022-23 (upto September, 2022) FDI worth USD 39.10 billion has been reported. During the current financial year, 2022-23 (upto September, 2022) FDI worth USD 39.10 billion has been reported which is about 9 per cent lower than USD 41.9 billion FDI inflow during April to September, 2021.
• FDI inflow in the last 8 financial years (2014-22: USD 525.10 billion) has increased by 82% over the previous 8 financial years (2006-14: USD 289.03 billion).
• FDI Equity inflow in Manufacturing Sectors increased by 76% in FY 2021-22 (USD 21.34 billion) compared to the previous FY 2020-21 (USD 12.09 billion).

 

 These trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors.

 

16. One District One Product (ODOP)

 

The Central Government has initiated the One District One Product (ODOP) in different States/UTs of the country. ODOP is seen as a transformational step towards realizing the true potential of a district, fueling economic growth, generating employment and rural entrepreneurship, taking us to the goal of Aatmanirbhar Bharat. ODOP initiative is operationally merged with the ‘Districts as Export Hub (DEH)’ initiative of the DGFT, Department of Commerce, with the Department for Promotion of Industry and Internal Trade (DPIIT) as a major stakeholder.

The ODOP Initiative is aimed at fostering balanced regional development across all districts of the country enabling holistic socio-economic growth across all regions. The objective is to convert each District of the country into a Manufacturing and Export Hub by identifying products with export potential in the district. Institutional mechanism under Districts as Export Hubs in the form of State Export Promotion Committees (SEPCs) and District Export Promotion Committees (DEPCs) have been constituted in all 36 States/UTs to provide support for export promotion and address the bottlenecks for export growth in the districts. The Department engages with State and Central Government agencies to promote the initiative of ODOP, which is an on-going process.

The ODOP GeM Bazaar on the Government e-Marketplace (GeM) was unveiled by the Commerce & Industry Minister (HCIM). The platform has over 250+ product categories, which has allowed all Govt. bodies to procure ODOP products in line with the Prime Minister’s vision for “Vocal for Local”. The ODOP GeM Bazaar has been a major success due to the constant support from State Governments/UTs. The ODOP Initiative has worked closely with the District as Export Hubs Scheme (DEH) under DGFT to identify and enable ODOP stakeholders through ODOP GeM Bazaar based on the “Gati Shakti Model”.

ODOP products are now available to be procured for gifting purposes for various Govt. bodies through GeM. The G-20 Secretariat has also highlighted its interest in procuring the ODOP gifts for G-20 meetings during India’s presidency of G-20 beginning December 2022.

These measures will play a vital role in not only empowering farmers/ weavers/ artisans/ craftsmen across the country but also to highlight India’s rich cultural heritage thereby achieving the vision under “Aatmanirbhar Bharat”.

 

17. Open Network for Digital Commerce (ONDC)

  

Open Network for Digital Commerce (ONDC) is an initiative by DPIIT aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC is based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.

These open protocols are used for establishing public digital infrastructure in the form of open registries and open network gateways to enable exchange of information between providers and consumers. Providers and consumers can thus use any compatible application of their choice for exchange of information and carrying out transactions over ONDC.

A test pilot of ONDC network has been launched in April, 2022 across 5 cities i.e Delhi, Bengaluru, Shillong, Coimbatore and Bhopal, with selected sellers and users. The pilot phase aims at field testing of technological solutions with placement of real orders and getting deliveries in real world environment and fine-tuning related processes.

 

18. Swachhata Campaign 2.0

 

• Special Campaign 2.0 was carried out in all the Ministries/Departments of GoI including DPIIT (and its 18 attached/sub-ordinate offices) during 02.10.2022 to 31.10.2022. DPIIT had asked all the sub-organizations under it to implement the Swachhta Campaign 2.0. During the campaign, inter-alia, the main focus was on weeding out of files and disposal of scrap/obsolete items. Field visits by 49 US/SO level officers were scheduled to review the progress of Swachhta Campaign 2.0 in 75 sub-offices of 18 attached/sub-ordinate organizations under DPIIT.
• During the special campaign, 5,42,585 files have been reviewed in DPIIT and its sub-organizations. Out of the reviewed files, 1,83,592 files were weeded out. 52,195 e-files were reviewed, out of which 3,862 files were closed. 23,087 Sq. Feet space was freed due to weeding out of files and scrap disposal.

 

19. International Cooperation:

 

· India Japan Summit was held on 19th March, 2022 during which PM of Japan visited India. The Prime Ministers noted with appreciation that since elevation of ties to a Special Strategic and Global Partnership, there had been significant growth in economic cooperation. They expressed satisfaction that the investment target of JPY 3.5 trillion announced in 2014 has been achieved and also expressed their shared intention to realize JPY 5 trillion of public and private investment and financing from Japan to India in the next five years, to finance appropriate public and private projects of mutual interest.

· Memorandum of Cooperation (MoC) on India-Japan Industrial Competitiveness Partnership (IJICP) was signed on 16.11.2021 to further promote industrial cooperation between the two countries including in the areas of MSME (Micro, Small and Medium Enterprises), manufacturing and supply chains. A Roadmap has been signed between METI, Japan and DPIIT on 19.03.2022 during the visit of  PM of Japan to India.

 

20. Department's contribution to the commemoration of Azadi ka Amrit Mahotsav

 

DPIIT is actively participating in Azadi Ka Amrit Mahotsav, an initiative of the Government of India to celebrate and commemorate 75 years of independence and the glorious history of its people, culture, and achievements. As part of Azadi Ka Amrit Mahotsav, DPIIT has prepared 75 days Action Plan starting 15^th August 2022 around the following themes:

 

• • Ease of Doing Business
  • Ease of Living
  • Reduction in Compliance Burden
  • Decriminalization of minor, procedural and technical violations

 

Several workshops have been organized on various Themes with Ministries/Departments, States, and Industry Associations. Further, Articles have been published in various newspapers (The Economic Times, Indian Express, Business Standard, Financial Express),magazines (Business Today, Outlook India) and on online platforms (The Print, Bloomberg) along with various social media posts covering the efforts of Ease of Doing Business, Reducing Compliance Burden and Decriminalization of existing Acts/Rules.

DPIIT is also conducting a campaign titled “Sahaj Karobarevam Sugam Jeevan Hetu Sujhav” on Innovate MyGov (https://innovateindia.mygov.in/suggestion-box) to invite suggestions from businesses and citizens to enhance Ease of Doing Business and Ease of Living.

 

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AD/KP/MS