Question : Incentives to Foreign Companies

(a) whether the Government has offered/is planning to offer incentives to foreign companies to set up factories in the country;

(b) if so, the details thereof along with the aims and objectives thereto;

(c) the time by which the said decision is likely to be implemented/come into force;

(d) whether the said policy of the Government will also provide ample employment opportunities to the youth across the country and if so, the State/UT-wise details thereof; and

(e) the steps taken/to be taken by the Government to protect the domestic companies which have been already set up in the country?

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THE MINISTER OF COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)

(a) to (c): Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), wherein most of the sectors are open to FDI under the automatic route. The Government reviews the FDI policy on an ongoing basis and makes changes from time to time, to ensure that India remains an attractive & investor friendly destination. It has been the endeavour of the Government to put in place an enabling and investor friendly FDI policy. The intent is to make the FDI policy more investor friendly and remove the policy bottlenecks that have been hindering investment inflows into the country.
(d): FDI inflows serve to augment domestic capital and promote employment opportunities across sectors. Such investments in various sectors bring international best practices and latest technologies leading to economic growth and employment generation in the country. However, the data of employment generation arising out of FDI is not centrally maintained.

(e): Protection to domestic industries from import surge etc. is provided through a mix of tariff and non-tariff measures. Specific action on such measures including imposition of higher custom duty and other remedial measures is taken by the administrative Department looking after a product/sector in consultation with Department of Commerce and Department of Revenue.


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