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India has potential to attract $160 billion FDI by 2025: Piyush Goyal

Tarun Nangia

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The Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyalhas said, as per a recent CII-Ernst & Young report, India will be the next investment global hotspot.

“We have the potential to attract an annual FDI in the range of $120- $160 billion by 2025. Last seven years we’ve seen a record FDI, each year breaking the previous record for 7 years in a row. And I do hope to see that continue looking at the major structural reforms, the fact that we have a proactive leader in Prime Minister Modi, willing to listen and willing tochange with the changing times,” he said, addressing the 2ndedition of the CII National Conference on MNCs, 2021,through video conference today.

Goyal said global sentiments have changed from ‘Why India?’ to ‘Why Not India!’, and today ‘We must be in India!’ “There are more success stories here than anywhere in theworld today, 71 unicorns. Naukri Jobspeak Index for Oct’ 2021 reports a 43% growth in employment over the same month last year. Our Manufacturing PMI (is high) and Service PMI reached a decade high,” he said.

Goyal said Government has introduced several key policy and business reforms for improving the investment climate.

“The closest and most recent decision like the privatization of Air India which was successfully bid by the Tata group, the removal of that very, very unfortunate Retrospective Tax which has, I believe, cost us dear in terms of investment climate for many years, the kind of reforms in Mining, in the Coal sector, ones that we are hoping to do in Power, the huge Renewable Energy growth story in India, all of these things, I think, encourage us to look for a brighter future,” he said.

Goyal said the National Single Window System (NSWS) has been launched to serve as a one-stop-shop for approvals and clearance needed by investors. “The portal hosts approvals across 18 Central departments and 9 States. Another 14 Central departments and 5 States will be added by December.”

Goyal said India has all the right ingredients for the Multi-National Corporations (MNCs) and can help MNCs become more competitive at global level. “Diverse business landscape, rule of law & transparent systems, skilled workforce & low labour cost, no forced technology transfers.”

Encouraging the Indian MNCs to take ‘Brand India’

to the world and be ambassadors of India’s culture, quality and values, Shri Goyal said MNCs have been an integral part of India’s growth story and their contribution is immense.

“Whether it’s in terms of building highly skilled managerial talent, whether it’s building good business practices or good manufacturing practices in India, whether it’s the good Corporate Social Responsibility and such social initiatives that are taken up by many of our MNCs. Whether it’s skill development, I think, a huge contribution by the MNCs when it comes to skill development in India, and all of these have had a multiplier effect on the economy,” he said.

Goyal stressed on promoting partnership between the Government and Industry. “This partnership is important more because in today’s time because it gives us ideas, it gives us thoughts, it gives us an opportunity to understand where you come from, what needs to be done and, I think, this partnership needs to be strengthened further as we go along.”

Quoting Prime Minister Modi, “Good and smart governance is needed to bring reforms.

The world is a witness to how India is writing a new chapter of governance”, Goyalinvited entrepreneurs to be a part of the unfolding India story.

Goyal said Government has introduced several key policy and business reforms for improving the investment climate. “The closest and most recent decision like the privatization of Air India which was successfully bid by the Tata group, the removal of that very, very unfortunate Retrospective Tax which has, I believe, cost us dear in terms of investment climate for many years, the kind of reforms in Mining, in the Coal sector, ones that we are hoping to do in Power, the huge Renewable Energy growth story in India, all of these things, I think, encourage us to look for a brighter future,” he said.

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Policy & Politics

Consolidation of trading relationship with the US

Tarun Nangia

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USA has been the largest trading partner of India with respect to merchandise trade since the FY 2018-19, except 2020-21 when trade with the U.S. declined marginally on account of the Covid-19 pandemic. In the current FY 2021-22 (April- October), USA has once again become the largest trading partner with bilateral merchandise trade of US$ 67.41 billion, accounting for 11.98% of India’s total merchandise trade. (as per DGCIS figures)

India and United States enjoy a comprehensive strategic partnership covering a broad range of areas, underpinned by shared democratic values and vibrant people-to-people contacts. Trade and commercial ties form an important component of this multi-faceted partnership. India and the U.S. are continuously engaged in strengthening these ties through bilateral dialogue mechanisms at Ministerial level including the Trade Policy Forum and Commercial Dialogue.

The 12th India-U.S. Trade Policy Forum meeting co-chaired by the Commerce and Industry Minister of India and the U.S. Trade Representative was held recently in November, 2021 at New Delhi, in which both the Ministers discussed various outstanding trade issues for early resolution on mutual basis, and also reached convergence on certain market access issues.

The bilateral trade with Australia, UAE and Belgium has gone up in the first nine months (Jan-Sept) of Calendar Year 2021. During this period, India’s bilateral trade with Australia has increased to US$ 13.88 billion in 2021 from US$ 7.48 billion in the corresponding period of 2020. The bilateral trade with UAE has grown to US$ 49.06 billion in 2021 from US$ 29.48 billion in 2020 for the same period. The bilateral trade with Belgium has also grown to US$ 13.70 in 2021 from US$ 7.63 billion in 2020 for the same period. (as per DGCIS figures).

This information was given by the Minister of State for Commerce and Industry, Anupriya Patel, in a written reply in the Rajya Sabha today.

The 12th India-U.S. Trade Policy Forum meeting co-chaired by the Commerce and Industry Minister of India and the U.S. Trade Representative was held recently in November, 2021 in New Delhi, in which both the Ministers discussed various outstanding trade issues for early resolution on mutual basis.

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Policy & Politics

India can emerge as the largest diamond trading hub in the world: Piyush Goyal

Exports of gems and jewellery more than double and rise to $23.62 bn in the first 7 months this FY as compared to last year: Piyush Goyal.

Tarun Nangia

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Piyush Goyal

Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal today said India can emerge as the largest diamond trading hub in the world. In a video message during the Inauguration Ceremony of Gems & Jewellery Manufacturing Show – 2021”, organised by the Surat Jewellery Manufacturing Association (SJMA), Shri Goyal said the Government has declared the Gems & Jewellery sector as a focus area for export promotion.

“We have established ourselves as the largest player in diamond cutting & polishing, we can become the largest international diamond trading hub,” he said.

Exports of gems and jewellery this FY in the first 7 months upto October’ 21 was $ 23.62 bn, as compared to $ 11.69 bn (+102.09%) for the same period previous year.

“Superior quality of our manufacturers has enabled us to penetrate markets like Dubai-UAE, USA, Russia, Singapore, Hong Kong and Latin America,” he said.

Goyal said the Government has taken various measures to promote investment for growth of the sector, – Revamped Gold Monetisation Scheme, Reduction in import duty of gold and mandatory hallmarking.

“We have the best artisan force for designing and crafting in the world, there is a need to focus on strengthening creativity & systematic skill development of artisans,” he said, adding, “We should make our products a benchmark of quality, to further expand in new markets & deepen presence in existing ones.”.

Goyal laid out four points to make India’s Gems & Jewellery a pioneer industry in the world:

1.​Focus on Design (creation of patented designs) in order to increase value add of our products and make our manufacturing more profitable.

2.​Diversification of export products: Emphasis on products like pearls, silver, platinum, synthetic stones, artificial diamonds, fashion jewellery, non-gold jeweller, etc.

3.​Collaboration with other nations for cost-effective methods to enhance production of fusion jewellery.

4.​Promote Lab-Grown Diamond: They are environment friendly & affordable and will contribute to India’s export as well as generate employment.

Goyal said Surat is, perhaps, one of the fastest growing cities in the world and is home to more than 450 organised jewellery manufacturers, importers & exporters. It has the potential to become the jewellery manufacturing hub of the world, he added.

“I visited the Diamond Bourse in September on the day of the Honourable Prime Minister’s birthday and I was impressed by the efforts put to create the world’s largest office building which will serve as the hub of all Diamond trading activities. It is an example of Prime Minister’s Aatmanirbharta and your Aatmavishwas. It is a testament of the fact that if we are willing enough we can do anything on our own. Jewellers are woven into the fabric of our nation. People don’t just spend money when they buy gold & jewellery in our country but invest their life’s savings when they do so. Jewellers are the repositories of trust and faith of our people,” said Goyal.

The Minister said, the SJMA, since its inception in 2016, has championed the cause of improving the jewellery industry in Surat. “Their ‘Make in Surat’ programme has facilitated innovation & promoted skill development to build a robust jewellery manufacturing ecosystem.”

Stating that India’s Gems & Jewellery sector is known all over the world for its Charm & Cost Effectiveness, Shri Goyal said this sector embodies the spirit of New India, contributing about 7% of India’s total GDP & employing more than 50 lakh workers. “Our jewellers have mastered the art of diamond manufacturing & jewellery making and have made it a shining example of ‘Make in India’,” he said.

Quoting a proverb, “Progress is impossible without change, and those who cannot change their minds cannot change anything”, Goyal said our G&J sector has the potential to realise the goal of “Local Goes Global and Make in India for the World” and become the driving force of New India. “For progress there is a need for change in mindset,” he said.

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Policy & Politics

Is an inventive move a solution for the sustainability of the fashion industry?

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Clothing industry is the contemplation of our values, culture and society in which we live in. However if we see today it is fundamental reflection of our identity .The fashion industry constitutes a significant part of our economies as well as vicinity, with the worth of more than 2.5 trillion $USD and giving employment to more than 75 million of people worldwide.

The sector has seen extensive amount of growth over the last years, as clothing production has doubled between the tenure from 2000 and 2014.As the fashion industry is achieving sky rocketing success, it is negatively impacting to the environment in terms of carbon emissions, drying up the water sources and polluting water and streams.

We must emphasize on the fact that it’s production not only could seriously influence our environment but people as well as culture we live in.The toxic substances utilised in the production of the textiles is putting harmful impact not only on the health of the human resources engaged but also on the vicinity which is being around it.

But there are some of the solutions through which we could move in a right direction:

Orientation towards Fashion: A developing number of pioneers have changed how they see what shoppers are truly after – admittance to mold, not really responsibility for. An arising wave of organizations are offering clothing as a help .Such plans of action can possibly drive up the nature of items to guarantee life span, make shopping simple while giving a channel to reclaim, reuse or reusing. These models will not be applicable for all market sections or fulfill all purchaser inclinations, yet can absolutely be essential for the arrangement.

Emphasize on Function: From lab-developed calfskin to reasonable cellulose-based materials, great advancements are testing customary suppositions regarding how elite execution materials are created. For instance, Lenzing has fostered a reasonable cellulose-based material, Tencel, that guarantees quality, execution and supportability. Social business visionary Modern Meadow is bringing design into the lab, making “biofabricated” materials, with the first bio-designed cowhide dispatched a year ago. This is just the actual hint of something larger in what developments can be investigated to rethink materials creation.

Formulation of Recovery economy: Today, under 1% of material used to form clothing is reused into new dress, and just 13% of the complete material information is here and there reused after apparel use. While numerous customers think they are doing acceptable by giving garments, the sheer volume of gifts implies a lot of winds up in landfills. Financial motivators to support clothing reusing are feeble, and mechanical advancement is deficient. A couple of computerized stages for apparel reclaim are arising to boost purchasers, like Yellow Octopus, however a solid government push will be needed to rebalance what is presently a messed up market framework for recuperation and reusing. Strategy choices including broadened maker obligation and out and out guideline to, for instance, boycott the consuming of unsold style things have started to come to fruition in nations like France and the UK.

Joint Effort: Youngsters are forming a basic part in making a more manageable design area – with in excess of 30 World Economic Forum Global Shaper center points driving a Shaping Fashion drive through ground-up aggregate activity. While the weight of effect ought not tumble to shoppers to address, their commitment in both requiring a more supportable future, while additionally taking an interest in a roundabout economy for style is basic to move the framework.

While a couple of sparkling stars are making a serious move, they can’t move a whole style framework, with its immensely appropriated supply chains and very cut throat nature. Worldwide public and private area authority supported by activities at scale will be basic. Late certain signs are arising: the assembling body Global Fashion Agenda is advancing a 2020 circularity responsibility that more than 10% of the business has embraced, France is utilizing its G7 initiative to lead an approach push and has approached François-Henri Pinault, CEO of Kering, to bring business along. The European Commission has additionally featured materials as the following need for administrative concentration, and more nations are investigating public strategy and administrative activities.

Eco friendly material mix: There is a requirement of reducing the influence of harmful fibres and requirement of more sustainable fibre.

Fashion system that orient towards closed loop: There should be formulation of those products which take into consideration the reuse and recycling of post customer textiles at scale.

Fourth Industrial Revolution : It means taking into account those possibilities in the digitalization and immerse with the different kinds of stakeholders to prepare for transition of workforce…

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Policy & Politics

Pawan Kumar takes over as Director (Commercial) at Indraprastha Gas Limited

Tarun Nangia

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Pawan Kumar has taken over as Director (Commercial) of Indraprastha Gas Ltd. (IGL), the largest CNG distribution company of the country, operating City Gas Distribution (CGD) networks across 27 districts in ten geographical areas across four states of Delhi, Uttar Pradesh, Haryana and Rajasthan.

A graduate in Industrial Engineering from prestigious Indian Institute of Technology (IIT), Roorkee and post graduate in management from S.P. Jain Institute of Management & Research, Mumbai, Mr. Kumar is a senior leader in hydrocarbon space having a rich experience of over 33 years across multiple regions in various roles during his tenure in Bharat Petroleum Corporation Limited (BPCL). He has worked across the entire value chain in LPG sector, including Marketing, Operations, Maintenance, Safety, Training, Strategy, Network Expansion, Distribution Channel Management, Logistics etc. Before joining the current assignment, he was the Regional LPG Head for Northern Region of BPCL comprising seven states & three Union Territories servicing 2.5 crore customers & 2000 distributors. He has been the pioneer in implementation of Ujjwala Scheme across states of Uttar Pradesh, Uttarakhand, Delhi, Haryana, Rajasthan, Punjab, Himachal Pradesh, Jammu & Kashmir, Ladakh and Chandigarh.

Mr. Kumar has taken over the position of Director (Commercial) from Mr. Amit Garg, who has been repatriated back to his parent organization BPCL to Head the new vertical of Renewable Energy. IGL is a joint venture of GAIL (India) Ltd. and BPCL along with Govt. of NCT of Delhi.

Mr. Kumar is a senior leader in hydrocarbon space having a rich experience of over 33 years across multiple regions in various roles during his tenure in Bharat Petroleum Corporation Limited (BPCL).

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Policy & Politics

RS 2 lakh crore outlay announced for PLI schemes

Tarun Nangia

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budget 2021

Keeping in view India’s vision of becoming ‘Atmanirbhar’ and to enhance India’s Manufacturing capabilities and Exports, an outlay of INR 1.97 lakh crore (US$ 26 billion) has been announced in Union Budget 2021-22 for PLI schemes for 13 key sectors of manufacturing starting from fiscal year (FY) 2021-22.

(Source: Concerned implementing Ministries/ Departments)

The 13 key sectors include already existing 3 sectorsnamely (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices and 10 new key sectorswhich have been approved by the Union Cabinet in November 2020. These 10 key sectors are:

(i) Automobiles and Auto Components, (ii) Pharmaceuticals Drugs, (iii) Specialty Steel, (iv) Telecom & Networking Products, (v) Electronic/Technology Products, (vi) White Goods (ACs and LEDs), (vii) Food Products, (viii) Textile Products: MMF segment and technical textiles, (ix) High efficiency solar PV modules, and (x) Advanced Chemistry Cell (ACC) Battery.

PLI Scheme for an additional sector, Drones and Drone Components, has also been approved by the Union Cabinet in September 2021. With the announcement of PLI Schemes, significant creation of production, employment, and economic growth is expected over the next 5 years and more.

The PLI schemes are being implemented by the concerned Ministries/ Departments. A statement on details received from concerned Ministries/Departments regarding investment made by various sectors after 1st April, 2021, to avail Production Linked Incentive (PLI) scheme is placed in the table below:

There is no plan to relax Production Linked Incentive Scheme for White Goods.

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

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Policy & Politics

RS 56,000 CRORE RELEASED TO CLEAR DUES TO EXPORTERS

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Government has released Rs 56,027 crore in order to clear pending export incentive dues to exporters, which is for various Schemes namely: Merchandise Exports from India Scheme (MEIS) – Rs 33,010 crore, Service Exports from India Scheme (SEIS) – Rs 10,002 crore, Rebate of State and Central Taxes and Levies (RoSCTL) – Rs 5,286 crore, Rebate of State Levies (RoSL) – Rs330 crore, Remission of Duties and Taxes on Exported Products (RoDTEP) – Rs 2,568 crore and other legacy Schemes like Target Plus Scheme (TPS), Focus Product Scheme (FPS) etc. – Rs 4,831 crore. This includes support for exports made under RoDTEP and RoSCTL Schemes during the 4th quarter of FY 2020-21. It is estimated that such benefits would be disbursed to more than 45,000 exporters, out of which around 98% may fall in the Micro, Small and Medium Enterprises (MSME) category.

Clearance of dues under these Schemes is dependent on meeting the eligibility criteria by the applicant exporter, whose applications are scrutinized for any deficiency. The process of approval of complete applications under these Schemes varies. In certain Schemes, such as MEIS, ROSCTL and ROSL, online applications are largely system approved, whereas for SEIS, TPS, FPS online applications require manual scrutiny and examination of documents. Accordingly the detail of exporters’ dues state-wise isnot maintained.

To reach the target, some of the key schemes/interventions taken by the Government are:

i. The Foreign Trade Policy 2015-20 has been extended upto31.03.2022 to provide a stable regime during the COVID-19 pandemic, wherein Schemes such as the Advance Authorization Scheme and the Export Promotion Capital Goods (EPCG) Scheme are being implemented to enable duty free import of raw materials and capital goods for export production.

ii. Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme has been introduced with a budget of Rs 12,454 crore for FY 2021-22.

iii. Rebate of State and Central Levies and Taxes (RoSCTL) Scheme for apparel and made-up exports has been extended till March 2024 with existing rates.

iv. Transport and Marketing Assistance (TMA) scheme for specified agriculture products is being implemented to provide assistance for the international component of freight and marketing of agricultural produce and to promote brand recognition for Indian agricultural products in the specified overseas markets.

v. A common digital platform for Certificate of Origin (CoO) has been launched to increase Free Trade Agreement (FTA) utilization by exporters.

vi. Monthly monitoring of exports for 200 countries and 31 commodity groups is being done.

vii. Under the aegis of “Azadi Ka Amrit Mahotsav”, VanijyaSaptah was celebrated during 21-26th September 2021 to reach out to members of industry, exporters, association and State/Union Territory Governments for awareness and interaction on exports and various export related issues.

viii. In order to leverage full export potential, districts are being promoted as Exports Hubs by identifying products and services with export potential of each district.

ix. Exports of services is being supported through negotiating meaningful market access through multilateral, regional and bilateral trade agreements and through participation in and organization of international fairs/exhibitions like the Global Exhibition on Services.

x. An ‘Action Plan for Champion Sectors in Services’ to give focused attention to identified Champion Services Sectors through identified nodal Ministries/Departments is also in place.

xi. Assistance is being extended to exporters under the Market Access Initiative (MAI) scheme for various activities such as export market research, product development, product registration, organizing / participating in fairs, exhibitions and Buyer Seller Meets (BSMs) abroad, Reverse Buyer Seller Meets etc.

xii. In order to have a coordinated and focused attention on development of export infrastructure, a working group on infrastructure up-gradation has been constituted under National Committee on Trade Facilitation (NCTF) and a National Trade Facilitation Action Plan (NTFAP) has been formulated. This includes measures for improving road and rail connectivity to ports and smart gates at sea ports.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Anupriya Patel, in a written reply in the Lok Sabha today.

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