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Government is preparing to take a big step after the Lok Sabha elections, DPIIT Secretary expressed hope

2876693 Rajeshkumar SinghFDI Rules: India has recently relaxed the Foreign Direct Investment (FDI) rules in the space sector. It is also expected that FDI rules may be relaxed in some other sectors when the new government comes to power. Rajesh Kumar Singh, Secretary, Department of Promotion of Industry and Internal Trade (DPIIT) said this. He said that in the last few years, India has liberalized the FDI policy in many sectors. He said that India’s policies are one of the most liberal FDI policies in the world. In fact, it is more flexible than many South East Asian countries.  

FDI rules eased in space sector

Singh said at the CII annual business summit that recently FDI norms were eased in the space sector. There is a great possibility that under the new government, we can try for it in whatever areas are left and where some liberalization is possible. Lok Sabha elections are going on in the country and the counting of votes is to be held on June 4. According to government data, FDI in India declined by 13 percent to US $ 32.03 billion in April-December 2023. This was mainly due to low investment in computer hardware and software, telecom, auto and pharmaceutical sectors.

Talking about the success of the Production Linked Incentive Schemes (PLI), the Secretary said that so far an investment of Rs 1.13 lakh crore
has come and the beneficiary companies have generated sales of more than Rs 9 lakh crore, exports of Rs 3.45 lakh crore, and have also given employment to more than eight lakh people. Singh said that some people criticize this scheme saying that it has not increased domestic value addition, but they should know that it takes time.

Survey to begin in August
Regarding ease of doing business, he said work is underway on the World Bank’s Business Ready (B-Ready) index, for which the survey will begin in August. Singh said India expects a good response from many automobile companies on its electric-vehicle (EV) policy. This policy was released in March to attract global companies like Tesla.

He said that in the policy, the government has made a provision to change the fee by just committing to set up the base without making any real investment in India. He said that everyone talks about one company (Tesla), but we are expecting response from many companies on this policy.