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This article is more than 1 year old.

Government forms panel to attract foreign investors to India

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With the need to pump in private sector investment to boost growth, the Narendra Modi government has set up an empowered group of secretaries under the cabinet secretary Rajiv Gauba.

Government forms panel to attract foreign investors to India
With the need to pump in private sector investment to boost growth, the Narendra Modi government has set up an empowered group of secretaries under the cabinet secretary Rajiv Gauba.
The group of of secretaries has prepared a three-pronged strategy to attract investments which includes a review of Production Linked Incentive (PLI), Phased Manufacturing Programme (PMP) and Free Trade Agreements (FTAs).
CNBC-TV18 learns that the panel is of the view that the PLI scheme funding should be garnered out of the savings from the Merchandise Exports from India Scheme (MEIS) on account of transition to Remission of Duties or Taxes on Export Product (RoDTEP). The panel has also suggested disbursal of PLI schemes through budgetary outlay only instead of scrips.
The government think tank NITI Aayog has identified 10 sectors as champion sectors which will help attract investments at a time global supply chains are impacted and in the long run help shore up revenue.
The 10 identified sectors include specialty chemicals, capital goods, technology products, white goods, networking products, automobiles & auto components, textiles, food processing and advanced battery cells.
The panel may take charge to identify any new products within the identified sectors for PLI benefits, as well as suggest some restrictions on financial outlay for the PLI scheme. It is believed that restriction on financial outlay will ensure PLI is capped and is subject to the availability of funds. The panel may revisit financial outlays for pharmaceuticals and food processing sectors specifically.
The panel of secretaries is also likely to identify sectors for the Phased Manufacturing Programme and review FTAs to find ways to make India an attractive destination for investments.
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