Government Initiatives

With the government's focus on making business in India easier through the establishment of nation-specific offices to "handhold" foreign investment, India has advanced in recent years in the rankings for ease of doing business. The government has also attempted to rein in the aggressive tax administration through more openness and transparency. It has also taken multiple other initiatives to improve the business regulatory environment in the country and simplified the process of making domestic investments. Some of these are:

• The Union Minister of Ports, Shipping & Waterways, announced initiatives to enhance the capacity of Kandla Port, involving an investment exceeding Rs. 57,000 crore (US$ 6.59 billion). Among the key announcements is the establishment of a new Mega Shipbuilding Project, which will entail an investment of Rs. 30,000 crore (US$ 3.47 billion). 
• India’s new rules for environmental, social and governance investments and ratings are likely to attract more investors to the nation’s US$ 1.4 billion market and serve as a model for other countries. Over the last two years, India has implemented many measures to regulate its market for green and other assets, most notably permitting domestic fund managers to create plans under six types of ESG strategies.
• The introduction of the Goods and Services Tax, easing liquidity problems of NBFCs and Banks, the reduction of corporate tax, improvements to the business environment, changes to the FDI policy, reduction in Compliance Burden, policies to support domestic manufacturing through public procurement orders, and the Phased Manufacturing Programme (PMP) are just a few of the actions taken by the government to encourage domestic investments.
• The National Logistics Policy (NLP) aims to decrease the cost of logistics and make it to par with that of other developed nations. A comprehensive approach to address cost inefficiencies is being laid down by establishing an interdisciplinary, cross-sectoral, multijurisdictional framework for enhancing the entire logistics ecosystem. This would bolster India's economy, provide employment opportunities, and make Indian products more competitive in the global market. It was launched on September 17, 2022.
• The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced a dynamic reform exercise called the Business Reforms Action Plan, which ranks all the states and UTs in the country based on the implementation of designated reform parameters. The reforms have focused on streamlining the current rules and procedures and getting rid of unnecessary requirements and steps. The Action Plan covers multiple reform areas such as:
  • Investment Enablers
  • Online Single Window System
  • Land administration and Transfer of Land and Property
  • Construction Permits Enabler
  • Labour Regulation Enablers
  • Environment Registration Enablers
  • Inspection Enablers
  • Paying Taxes
  • Obtaining Utility Permits

• The Ministry of Labour and Employment has taken several steps to streamline labour laws to make conducting business easier. By condensing, combining, and rationalising the pertinent provisions of 29 Central Labour Laws, the Government has notified four labour codes: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Code on Occupational Safety, Health, and Working Conditions, 2020.
• In order to incentivise new domestic companies to set up their manufacturing units in India, the government has extended the concessional tax rate of 15% to March 31, 2024.
• The government introduced the India Industrial Land Bank (IILB), which is a GIS-based portal - a one-stop repository of all industrial infrastructure-related information - connectivity, infrastructure, natural resources, terrain, plot-level information on vacant plots, line of activity, and contact details.
• On April 30, 2022, Minister of Ports, Shipping and Waterways, Mr. Sarbananda Sonowal, announced that Cochin Shipyard Limited has committed to invest an initial corpus of Rs. 50 crores (US$ 6.47 million) in startup companies engaged in the maritime sector.
• India's Production-Linked Incentive (PLI) schemes generated investment commitments of Rs. 2.34 lakh crores (US$ 30.24 billion). Automobile and auto components, advanced chemistry cell batteries, speciality steel and high-efficiency solar panels have attracted the maximum interest.
• The government is expected to invest Rs. 1.20 lakh crores (US$ 15.5 billion) in the automobile industry in the next five years.
• The Ministry of Education (MoE) has proposed an outlay of Rs. 1,102.91 crores (US$ 142.57 million) for Punjab in FY23 under the flagship Samagra Shiksha Scheme for school education.
• Minister of Home Affairs and Cooperation, Mr. Amit Shah, inaugurated the newly constructed tourism facilities for SeemaDarshan at Nadabet in the Banaskantha district of Gujarat. The Gujarat government spent Rs. 125 crores (US$ 15.66 million) on the same.
• The Uttar Pradesh government launched projects worth Rs. 70,000 crores (US$ 8.77 billion) in the state in June.
• In April 2022, the government approved financial incentives to 61 companies for its textiles Production Linked Incentive (PLI) scheme. These companies plan investment of Rs. 19,077 crores (US$ 2.39 billion).
• In February 2022, The Ministry of Heavy Industries notified a Phased Manufacturing Programme (PMP) to promote domestic manufacturing of electric vehicles, their assemblies/sub-assemblies, and parts/sub-parts/inputs of the sub-assemblies.
• In February 2022, Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, announced a new scheme, Development Initiative for Northeast' PM DevINE', allocating Rs. 1,500 crores (US$ 200.6 million).
• In February 2022, Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, proposed to allocate Rs. 100,000 (US$ 13.37 billion) to assist states in overall investments.
• In January 2022, the Cabinet Committee on Economic Affairs approved equity fusion of Rs. 1,500 crores (US$ 200.6 million) in the Indian Renewable Energy Development Agency Limited (IREDA).
• The Ministry of Finance has granted Rs. 7,309 crores (US$ 977.4 million) to 11 states for undertaking reforms in the power sector in January 2022.
• In January 2022, the government sanctioned seven Mega Integrated Textile Regions and Apparel Parks with an investment of nearly Rs. 4,500 crores (US$ 601.8 million).
• In December 2021, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr. Piyush Goyal, stated that more than 25,000 compliances had been reduced in the previous exercise implemented by the centre to reduce the compliance burden and to promote ease of living and ease of doing business.
• On December 27, 2021, Prime Minister Mr. Narendra Modi visited Mandi to inaugurate hydropower projects worth over Rs. 11,000 crores (US$ 1.47 billion).
• In the next five years, the Airports Authority of India plans to invest roughly Rs. 25,000 crores (US$ 3.34 billion) in the expansion and renovation of current terminals.
• In September 2021, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Mr. Piyush Goyal, launched the National Single Window System (NSWS). The single-window portal would become a one-stop shop for investors for approvals and clearances, which would bring transparency, accountability, and responsiveness to the ecosystem.