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Development of Domestic Version of Ease of Doing Business Index


Development of Domestic Version of Ease of Doing Business Index 
Department of Industrial Policy and Promotion (DIPP) has formulated action points to ease doing business in the country.

Various areas have been identified and action points on ease of doing business index/indicators have been prepared for assessing the overall business performance of the country as well as States/Union Territories. 


Government has undertaken a number of steps to improve Ease of Doing Business in India. Ministries and State Governments of Maharashtra and NCT of Delhi have been advised to simplify and rationalize the regulatory environment through business process reengineering and use of information technology. Other important measures taken by the government to boost the business regulatory environment and to improve Ease of Doing Business in the country include integration of 20 services on e-biz portal to function as single window for obtaining Government clearances, integration of the process of incorporation of the company and application for Director’s Identification Number (DIN), removal of requirements of minimum paid-up capital and common seal for companies.

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 Rajya Sabha today. 
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FDI in E-Commerce 
Enforcement Directorate conducts investigations under the Foreign Exchange Management Act, 1999 (FEMA) for possible contravention of FDI norms/ policy by various entities as and when any credible information is received in this regard. Based on the outcome of the investigation, appropriate action under the provision of FEMA is taken in such cases.

With a view to promote foreign investment, as per regulations framed under Foreign Exchange Management Act, (FEMA) 1999, FDI up to 100% under the automatic route is permitted in companies engaged in e-commerce provided that such companies would engage in Business to Business (B2B) e-commerce.

Foreign investment in Business to Customer (B2C) e-commerce activities has been opened in a calibrated manner and an entity is permitted to undertake retail trading through e-commerce under the following circumstances:

(i) A manufacturer is permitted to sell its products manufactured in India through e-commerce retail.

(ii) A single brand retail trading entity operating through brick and mortar stores, is permitted to undertake retail trading through e-commerce.

(iii) An Indian manufacturer is permitted to sell its own single brand products through e-commerce retail. Indian manufacturer would be the investee company, which is the owner of the Indian brand and which manufactures in India, in terms of value, at least 70% of its products in house, and sources, at most 30% from Indian manufacturers.

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 Rajya Sabha today. 
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Impact of ‘make In India’ Programme 
The Prime Minister of India launched the “Make in India” global initiative on 25th September 2014.

‘Make in India’ initiative aims at promoting India as an important investment destination and a global hub for manufacturing design and innovation, to invite both domestic and foreign investors to invest in India. The initiative is aimed at creating a conducive environment for investment, development of modern and efficient infrastructure, opening up new sectors for foreign investments and forging a partnership between government and industry through a positive mindset. The “Make in India" initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, not only in manufacturing but also other sectors. The four pillars are (i) New Processes, (ii) New Infrastructure, (iii) New Sectors and (iv) New Mindset.

25 sectors have been identified under ‘Make in India’ initiative, viz., (i) Auto Components, (ii) Automobiles, (iii) Aviation, (iv) Biotechnology, (v) Chemicals, (vi) Construction, (vii) Defence Manufacturing, (viii) Electrical Machinery, (ix) Electronic System Design and Manufacturing, (x) Food Processing, (xi) IT and BPM, (xii) Leather, (xiii) Media and Entertainment, (xiv) Mining, (xv) Oil and Gas, (xvi) Pharmaceuticals, (xvii) Ports, (xviii) Railways, (xix) Roads and Highways, (xx) Renewable Energy, (xxi) Space, (xxii) Textiles, (xxiii) Thermal Power, (xxiv) Tourism and Hospitality and (xxv) Wellness. A National Workshop was held on ‘Make in India’ initiative on 29th December 2014 in Vigyan Bhawan, New Delhi to prepare Action Plans for one year and three years for the identified sectors. Ministries/Departments concerned have updated their action plans to identify quantifiable and measurable milestones in respect of each activity of their Action Plan. The progress on ‘Make in India’ Action Plans is being monitored.

The ‘Make in India’ programme has received a very positive response. FDI inflow has increased 29% during the period October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of ‘Make in India’. FDI equity inflow has increased 36%. There is an improvement in business environment with the initiatives taken to improve Ease of Doing Business under the ‘Make in India’ programme. This has resulted in the UNCTAD World Investment Report (WIR) 2015, in its analysis of the global trends in Foreign Direct Investment (FDI) inflows, ranking India as the third top prospective host economies for 2015-2017. Frost & Sullivan has ranked India as number 1 amongst 100 countries on the growth, innovation and leadership index. 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 1st half of 2015.

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 Rajya Sabha today. 
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Applications from Foreign Companies for Setting up of Industrial Units 

            The details of Foreign Direct Investment (FDI) applications/proposals, the proposals sanctioned and the amount involved for the proposals received by Government from foreign companies during the last two years under the approval route sector is indicated below:-
           
Year
No. of Proposals received
No. of Proposals
disposed
Amount of (in Rs crore)
2014-15
344
250
44005.85
2015-16 (upto Jan, 2016)
424
285
48902.76

            Except few sectors which are under approval route, FDI upto 100% is under automatic route. The FDI equity inflow data is not maintained state wise, but RBI regional office wise. FDI equity inflows recorded for a particular regional office of RBI, may cover more than one state.  Further, a company may report investment transaction in the state where its head office is situated irrespective of the state in which fund has been utilized. Hence, in view of this, it is difficult to find the investment made exclusively for a single state. The details of amount of FDI Equity Inflows from April, 2014 to December, 2015 (RBI’s Regional Office-wise) is as below:

Sl. No.
Regional Offices of RBI
States Covered
2014-15
Apr - Mar
2015-16
Apr-Dec
Total



FDI
in US$ million
FDI
in US$ million
FDI
in US$ million
1
HYDERABAD
ANDHRA PRADESH, TELANGANA
1,368.72
783.51
2,152.23
2
GUWAHATI
ASSAM, ARUNACHAL PRADESH, MANIPUR, MEGHALAYA, MIZORAM, NAGALAND, TRIPURA
4.66
6.72
11.38
3
PATNA
BIHAR, JHARKHAND
11.13
42.68
53.81
4
AHMEDABAD
GUJARAT
1,531.15
1,476.45
3007.60
5
JAMMU
JAMMU & KASHMIR
4.06
0.00
4.06
6
BANGALORE
KARNATAKA
3,443.89
3,395.61
6,839.50
7
KOCHI
KERALA, LAKSHADWEEP
229.99
71.95
301.94
8
BHOPAL
MADHYA PRADESH, CHATTISGARH
100.13
57.09
157.22
9
MUMBAI
MAHARASHTRA, DADAR & NAGAR HAVELI, DAMAN & DIU
6,361.09
5,215.61
11,576.70
10
BHUBANESHWAR
ORISSA
9.17
5.29
14.45
11
JAIPUR
RAJASTHAN
540.93
41.16
582.09
12
CHENNAI
TAMIL NADU, PONDICHERRY
3,817.69
4,267.47
8,085.16
13
KANPUR
UTTAR PRADESH, UTTARANCHAL
110.36
66.50
176.86
14
KOLKATA
WEST BENGAL, SIKKIM, ANDAMAN & NICOBAR ISLANDS
238.60
886.62
1,125.21
15
CHANDIGARH
CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH
38.57
23.20
61.77
16
NEW DELHI
DELHI, PART OF UP AND HARYANA
6,874.95
10,645.04
17,519.99
17
 PANAJI
GOA
34.50
18.19
52.69
18
REGION NOT INDICATED
REGION NOT INDICATED
6,210.91
2,439.38
8,650.28


Grand Total
30,930.50
29,442.45
60,372.95


            FDI complements and supplements domestic investment. Domestic companies are benefited through FDI, by way of enhanced access to supplementary capital and state-of-art-technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into increased production, export and employment generation of the country.

            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 Rajya Sabha today.
*******
Applications from Foreign Companies for Setting up of Industrial Units 

            The details of Foreign Direct Investment (FDI) applications/proposals, the proposals sanctioned and the amount involved for the proposals received by Government from foreign companies during the last two years under the approval route sector is indicated below:-
           
Year
No. of Proposals received
No. of Proposals
disposed
Amount of (in Rs crore)
2014-15
344
250
44005.85
2015-16 (upto Jan, 2016)
424
285
48902.76

            Except few sectors which are under approval route, FDI upto 100% is under automatic route. The FDI equity inflow data is not maintained state wise, but RBI regional office wise. FDI equity inflows recorded for a particular regional office of RBI, may cover more than one state.  Further, a company may report investment transaction in the state where its head office is situated irrespective of the state in which fund has been utilized. Hence, in view of this, it is difficult to find the investment made exclusively for a single state. The details of amount of FDI Equity Inflows from April, 2014 to December, 2015 (RBI’s Regional Office-wise) is as below:

Sl. No.
Regional Offices of RBI
States Covered
2014-15
Apr - Mar
2015-16
Apr-Dec
Total



FDI
in US$ million
FDI
in US$ million
FDI
in US$ million
1
HYDERABAD
ANDHRA PRADESH, TELANGANA
1,368.72
783.51
2,152.23
2
GUWAHATI
ASSAM, ARUNACHAL PRADESH, MANIPUR, MEGHALAYA, MIZORAM, NAGALAND, TRIPURA
4.66
6.72
11.38
3
PATNA
BIHAR, JHARKHAND
11.13
42.68
53.81
4
AHMEDABAD
GUJARAT
1,531.15
1,476.45
3007.60
5
JAMMU
JAMMU & KASHMIR
4.06
0.00
4.06
6
BANGALORE
KARNATAKA
3,443.89
3,395.61
6,839.50
7
KOCHI
KERALA, LAKSHADWEEP
229.99
71.95
301.94
8
BHOPAL
MADHYA PRADESH, CHATTISGARH
100.13
57.09
157.22
9
MUMBAI
MAHARASHTRA, DADAR & NAGAR HAVELI, DAMAN & DIU
6,361.09
5,215.61
11,576.70
10
BHUBANESHWAR
ORISSA
9.17
5.29
14.45
11
JAIPUR
RAJASTHAN
540.93
41.16
582.09
12
CHENNAI
TAMIL NADU, PONDICHERRY
3,817.69
4,267.47
8,085.16
13
KANPUR
UTTAR PRADESH, UTTARANCHAL
110.36
66.50
176.86
14
KOLKATA
WEST BENGAL, SIKKIM, ANDAMAN & NICOBAR ISLANDS
238.60
886.62
1,125.21
15
CHANDIGARH
CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH
38.57
23.20
61.77
16
NEW DELHI
DELHI, PART OF UP AND HARYANA
6,874.95
10,645.04
17,519.99
17
 PANAJI
GOA
34.50
18.19
52.69
18
REGION NOT INDICATED
REGION NOT INDICATED
6,210.91
2,439.38
8,650.28


Grand Total
30,930.50
29,442.45
60,372.95


            FDI complements and supplements domestic investment. Domestic companies are benefited through FDI, by way of enhanced access to supplementary capital and state-of-art-technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into increased production, export and employment generation of the country.

            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 Rajya Sabha today.
*******
Make in India’ Programme 
The ‘Make in India’ programme aims at promoting India as an important investment destination and a global hub for manufacturing, design, and innovation. As a result of this initiative, FDI inflow has increased 29% during the period October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of ‘Make in India’. FDI equity inflow has increased 36%. As a result of initiatives taken to improve business environment, India has been ranked 3rd in the list of top prospective host economies for 2015-2017 in the World Investment Report (WIR) 2015 of UNCTAD. Frost & Sullivan has ranked India as number 1 amongst 100 countries on the growth, innovation and leadership index. 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 1st half of 2015.

Apprehensions of all stakeholders are being given due consideration in the programme. Government is coordinating with apex industry associations, such as FICCI, CII and ASSOCHAM in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate inflow of foreign direct investment in India, besides participating in the Joint Business Councils and other interactive sessions organized by them. Government has set up ‘invest India’, a joint-venture company between the Department of Industrial policy & Promotion and FICCI, as a not-for-profit, a single window facilitator, for prospective overseas investors, to act as a structured mechanism for attracting investment. The Government of India, in partnership with various State Government and Business Associations, is also making concerted efforts to make regulations conducive for business. It, therefore, recognizes the active role required to be played by it in investment promotion.

Major initiatives have been taken by Government for improving the ‘Ease of Doing Business’ in India through simplification and rationalization of existing rules and the introduction of information technology to make governance more efficient and effective. Ministries and State Governments have been advised to simplify and rationalize the regulatory environment through business process reengineering and use of information technology. Other measures include integration of 20 services on e-biz portal to function as single window portal for obtaining Government clearances, integration of the process of incorporation of the company and application for Director’s Identification Number (DIN), removal of requirements of minimum paid-up capital and common seal of companies, simplification of the procedure for Industrial License (IL) and Industrial Entrepreneur’s Memorandum (IEM), excluding a number of parts/ components from the purview of Industrial Licensing and issue of security manual for license defence industry to obviate the requirement of affidavit from applicant.

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 Rajya Sabha today. 


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