(a) the measures taken by the Government in encouraging private sector investment in the domestic markets; and
(b) the breakdown of growth in private sector investment over the last four years, State/UT-wise?
(a) the measures taken by the Government in encouraging private sector investment in the domestic markets; and
(b) the breakdown of growth in private sector investment over the last four years, State/UT-wise?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PON. RADHAKRISHNAN)
(a): The Government has taken several steps to boost domestic manufacturing and investment, including private sector investment. Invest India, the national investment promotion and facilitation agency, focuses on sector-specific investor targeting and development of new partnerships to enable sustainable investments in India. It also actively works with several Indian states to build capacity as well as to bring in global best practices in investment targeting, promotion and facilitation areas. Schemes such as ‘Start-up India’, ‘Ease of Doing Business’, Modified Industrial Infrastructure Upgradation Scheme, Business Reform Action Plan, Intellectual Property Rights (IPR) Policy etc. have enabled creation of a conducive environment for investment. Further, Foreign Direct Investment (FDI) policy and procedures have been simplified and liberalized progressively. The “Make-in-India” program of the Central Government has been launched to encourage private sector to manufacture within India. In this connection, the Public Procurement (Preference to Make in India) Order 2017 notified by Government of India mandates minimum local content in goods and services procured by Government, further giving a boost to Make in India.
To mobilize private investment in infrastructure sectors, steps like, launching of innovative financial vehicles such as Infrastructure Debt Funds, Infrastructure Investment Trusts (InvITs)/Real Estate Investment Trusts (REITs), developing new Public Private Partnership (PPP) models like Toll-Operate-Transfer and Hybrid Annuity Model, and periodic review of Harmonized Master List of Infrastructure Sub-sectors have been taken. Activation of the National Investment & Infrastructure Fund (NIIF) has also led to greater availability of capital for investment in the infrastructure sector.
(b): A Statement indicating the Gross Capital Formation (GCF) of Private Sector in economy is at Annexure-I. The State-UT wise information in private sector investment is not compiled by the Central Statistics Office, Ministry of Statistics and Programme Implementation.
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Annexure-I
Statement referred to in reply to part (b) of Lok Sabha Unstarred Question No. 2858 for 28.12.2018
Gross Capital Formation (GCF) for Private Sector
(in Rs. crores)
At current prices 2012-13 2013-14 2014-15 2015-16 2016-17
Private Corporations 1355836 1448883 1665493 1875766 1930940
Households 1465013 1416428 1513127 1272105 1398462
Total (Private Sector) 2820849 2865311 3178620 3147871 3329402
Growth rate (%) 1.6 10.9 -1.0 5.8
(in Rs. crores)
At 2011-12 (constant) prices 2012-13 2013-14 2014-15 2015-16 2016-17
Private Corporations 1308761 1360982 1471408 1656833 1697908
Households 1363683 1247561 1307051 1117707 1210014
Total (Private Sector) 2672444 2608543 2778459 2774540 2907922
Growth rate (%) -2.4 6.5 -0.1 4.8
Source: Statement 7.2B and 7.2C of “National Account Statistics 2018”