Commerce and Industry Minister Piyush Goyal on Monday, August 23, 2021, said that Foreign Direct Investment in the country is on the rise, which has increased to $12.1 billion in May this year.
He also said that the government is working on a mission mode to achieve the export target of USD 400 billion in 2021-22.
FDI inflow record $81.72 billion in FY21
India has achieved the highest ever FDI inflows in the financial year 2020-21. It grew by 10 per cent to USD 81.72 billion and during May 2021 to USD 12.1 billion, i.e. 203 per cent higher than May 2020,” the minister said while addressing a meeting of various industry associations on promoting exports. The top investors contributing to India’s high FDI inflows in FY21 include Singapore (29 per cent), followed by the US (23 per cent) and Mauritius (9 per cent).
He said that exports are registering good growth and outbound shipments during August 1-14, which grew 71 per cent over 2020-21 and 23 per cent over 2019-20.
Import tariff falls to 15% in 2020
According to the minister, India’s average applied import tariff (duty) has fallen from 17.6 per cent in 2019 to 15 per cent in 2020, and the country’s applicable duties are below the bound rate of 50.8 per cent (the limit permissible under the World Trade Organization).
20 lakh jobs will be created by 50,000 startups
Talking about employment, he said that over 54,000 startups are providing around 5.5 lakh jobs and over 20 lakh jobs will be created by 50,000 new startups in the next five years.
“It is time for our industry to expand our capability, capacity and commitment to develop resilient global supply chains,” he said, adding that the Center hopes that the Indian industry should suggest areas for intervention through research, handholding of manufacturers/ exporters, and deeper engagement with states and missions.
Industry’s suggestion to enhance export
During the meeting, the industry suggested steps like enhancing export competitiveness, addressing logistics problems, active role of states in capacity building of exporters and developing international markets for Indian products.
They also suggested the inclusion of pharma and chemicals under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
Industry body PHDCCI President Sanjay Agarwal said these sectors are essential to achieve the export target of USD 400 billion and “therefore these sectors are requested to be considered in the RoDTEP scheme”.
“The government has budgeted only Rs 17,000 crore for a scheme that is supposed to reimburse the embedded levies paid on inputs consumed in exports in FY22. It is far less than the government’s initial estimate of Rs 50,000 crore each year. The budget for the RoDTEP scheme, including all tariff lines, need to be increased,” he said.