(a) the details of the steps being taken to avoid the failures in the economic sector
and address the lack of mutual coordination among the Ministries;
(b) whether the Government has decided to allow Foreign Direct Investment on the
pretext of economic reforms and ignoring the sound domestic producers; and :
(c) if so, the intention of the Government behind it and details of the steps being
taken on to provide protection to indigenous producers?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) The Government has taken several steps to boost the economy and the industrial
sector in particular. In order to boost the business sentiment and investment certain
measures taken by the Government recently, inter alia, include liberalization of FDI
policy to attract foreign investment, announcing a road map to achieve fiscal
consolidation, reduction in the subsidy on diesel etc. The measures being taken by
the Government to revive the industrial growth, inter alia, include announcement of
the National Manufacturing Policy (NMP), better access to finance for manufacturing
sector, promoting Micro, Small & Medium Enterprises (MSME) sector by way of
higher allocation of funds, enhancing investment in the infrastructure sector by
focusing on Public Private Partnerships, etc. In order to ensure mutual coordination
among the Ministries, the Government has been monitoring large investment
projects on regular basis.
(b)& (c) Foreign Direct Investment (FDI) is a means to supplement domestic
investment to achieve stable growth in an economy. The role of FDI in the
upgradation of technology, skills and managerial capabilities is well accepted.
Additional investment, over and above investment possible domestically, helps in
providing much needed employment opportunities. FDI in India is also subject to
applicable laws/regulations, security and other conditionalities.