Press Information Bureau

Government of India

Ministry of Commerce & Industry

16-March-2016 18:04 IST

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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Ease of Doing Business reforms accelerate investment facilitation and simplify corporate compliance, enhancing foreign investment attractiveness. The programme advances investment facilitation through a not for profit single window facilitator and collaboration with industry bodies to boost FDI. Regulatory and procedural reforms to improve Ease of Doing Business include e portal integration for clearances, streamlined company incorporation with DIN issuance, removal of minimum paid up capital and common seal requirements, simplification of Industrial License and IEM procedures, selective exclusion from licensing, and a defence security manual eliminating affidavit requirements.