The Government has undertaken the following major reforms/measures to boost manufacturing sector in the country and to make India a favoured manufacturing and investment destination:

1. Production-Linked Incentive (PLI) Scheme in 14 key sectors, under the aegis of Aatma Nirbhar Bharat for enhancing India’s manufacturing capabilities and exports;
2. PM Gati Shakti- National Master Plan (NMP) was launched by Hon’ble Prime Minister on 13th October, 2021.It is an integrated GIS based plan depicting the economic zones and the multimodal connectivity infrastructure with an objective to holistically integrate the interventions of various Ministries / Departments and address missing gaps to ensure seamless movement of people, goods & services.
3. In order to facilitate and promote investment, Government has set up Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) in the Ministries/Departments.
4. National Single Window System involving clearances by Ministries /Departments and States Governments to provide end-to-end facilitation support. This national portal integrates the existing clearance systems of the various Ministries/ Departments of Govt. of India and State Governments without disruption to the existing IT portals of Ministries/ Departments.
5. DPIIT is also working to reduce compliance burden on citizen and business and the aim of this exercise is to simplify, decriminalize & remove redundant laws.
6. For Creating world class infrastructure through developing nodes, Government of India is developing various Industrial Corridor Projects as part of National Industrial Corridor programme which is aimed at development of futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world. The program is aimed at providing multi modal connectivity with complete “plug and play” infrastructure till the plot level along with building resilient and sustainable future ready cities.
7. Start-up India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.
8. DPIIT has developed an India Industrial Land Bank (earlier known as Industrial Information System) which provides a GIS-enabled database of industrial areas including clusters, parks, nodes, zones, etc. across the country to help investors identify their preferred location for investment.
9. Implementation of Industrial development schemes for North-East States, Himachal Pradesh, Uttarakhand and Union Territory of Jammu & Kashmir to boost  industrialization in the industrially backward and hilly States.
10. DPIIT is working closely on 24 Sub-sectors which have been chosen keeping in mind the Indian industries strengths and competitive edge, need for import substitution, potential for export and increased employability. These 24 subsectors are – furniture, air- conditioners, leather and footwear, ready to eat, fisheries, agri-produce, auto components, aluminium, electronics, agrochemicals, steel, textiles, EV components and integrated circuits, ethanol, ceramics, set top boxes, robotics, televisions, close circuit cameras, toys, drones, medical devices, sporting goods, gym equipment.  Efforts are on    to boost the growth of the sub-sectors in a holistic and coordinated manner.

Further, to promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy, wherein most sectors/activities are open for 100% FDI under the Automatic route. The policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive & investor friendly destination. Government has recently undertaken a number of reforms across sectors. In the last one year alone, reforms in the FDI Policy have been undertaken in sectors such as Insurance, Defence, Petroleum & Natural Gas, Telecom, etc. Subject to provisions of the FDI policy, foreign investment in ‘manufacturing’ sector is under automatic route. Manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on Principal to Principal or Principal to Agent basis. Further, a manufacturer is permitted to sell its products manufactured in India through wholesale and/or retail, including through e-commerce, without Government approval.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Rajya Sabha today.

Foreign investment automatic route widens manufacturing access; contract manufacturing and e commerce sales permitted without prior approval. The Government announced PLI incentives, the PM Gati Shakti National Master Plan for multimodal connectivity, institutional facilitation through Empowered Group of Secretaries and Project Development Cells, a National Single Window to consolidate clearances, DPIIT led compliance simplification, industrial corridors and a GIS enabled India Industrial Land Bank, targeted schemes for less developed and hilly regions, promotion of 24 priority sub sectors, and an investor friendly FDI policy allowing most manufacturing under the automatic route including contract manufacturing and sales via wholesale, retail and e commerce without government approval.