Question : Change in System to Start New Industries

(a) whether it is a fact that there is a need to bring huge change in administrative system of the country for starting a new industry;
(b) if so, the reaction of the Government thereto;
(c) whether India currently stands at 132nd position in the list of 185 countries at the world level in the terms of ease of doing business;
(d) if so, the reaction of the Government in this regard;
(e) whether these bottlenecks are turning out to be hindrances in foreign capital Investment in Indian industries; and
(f) if so, the details thereof and the corrective steps being taken by the Government in this regard?

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THE MINISTER OF COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)

(a) & (b): Government of India has undertaken a series of reforms to bring in favourable changes in administrative system/procedures to facilitate starting a new business. Department for Promotion of Industry and Internal Trade (DPIIT), in coordination with Central Ministries/Departments, States and Union Territories (UTs), has spearheaded such reforms to improve the business climate in the country. A summary of initiatives taken in this regard is given in Annexure.

(c): India currently stands at 77th position out of 190 countries assessed by the World Bank in its latest annual Doing Business Report (DBR), 2019 released on 31st October, 2018.

(d): A number of reforms have been undertaken since 2014, which has led to improvement of India’s rank from 142nd in DBR, 2015 to 77th in DBR, 2019.

(e) & (f): The Foreign Direct Investment (FDI) Policy of India has been formulated keeping in mind that it is more investor friendly and removes the policy bottlenecks that have been hindering investment inflows into the country. The extant FDI policy framework follows a negative list approach wherein barring a select few sectors, FDI is permitted up to 100% in the automatic route, subject to applicable laws/regulations, security and other conditionalities. Detailed FDI policy on various sectors indicating therein sector-wise FDI limits is provided in ‘Consolidated FDI Policy Circular of 2017’, as amended from time to time through subsequent Press Notes.

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