By TIOL News Service

NEW DELHI, DEC 21, 2024: FROM achieving milestones under the PLI scheme to boosting startup ecosystems, streamlining logistics, and enhancing FDI inflows, DPIIT has played a pivotal role in building a self-reliant and globally competitive India.

Some of the key initiatives and achievements of the Department in the year 2024 are:

Product-Linked Incentive (PLI) Schemes

Keeping in view India's vision of becoming 'Atmanirbhar', PLI Schemes for 14 key sectors have been announced with an outlay of Rs 1.97 lakh crore (over US billion) to enhance India's Manufacturing capabilities and Exports. Approved by Cabinet on 11.11.2020, the scheme has achieved significant milestones, including investments of Rs 1.46 lakh crore (US.5 billion), production/sales of Rs 12.50 lakh crore (US0 billion), exports worth Rs 4 lakh crore (US billion), and direct and indirect employment for 9.5 lakh individuals. Incentives disbursed till FY 2023-24 stand at Rs 9,721 crore. Over 1,300 manufacturing units across 14 sectors under 10 Ministries/Departments have been established in 27 States/UTs.

The 14 key sectors are: (1) Mobile Manufacturing and Specified Electronic Components, (2) Critical Key Starting materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (3) Manufacturing of Medical Devices, (4) Automobiles and Auto Components, (5) Pharmaceuticals Drugs, (6) Specialty Steel, (7) Telecom & Networking Products, (8) Electronic/Technology Products, (9) White Goods (ACs and LEDs), (10) Food Products, (11) Textile Products: MMF segment and technical textiles, (12) High efficiency solar PV modules, (13) Advanced Chemistry Cell (ACC) Battery, and (14) Drones and Drone Components.

The PLI scheme is going to have a cascading effect on the country's MSME ecosystem. The anchor units that will be built in every sector will require a new supplier base in the entire value chain. Most of these ancillary units will be built in the MSME sector.

PLI Scheme for White Goods (ACs and LED Lights) Scheme incentivizes manufacturing of components of ACs and LED Lights only. Outlay of Rs 6,238 crore approved (FY 2021-22 to FY 2028-29). Domestic value addition to increase from 20-25% to 75-80% at the end of the Scheme. 47% of committed investment of Rs 6,962 crore and 100% of envisaged direct employment of 48,000 generated up to September, 2024. Based on Industry appetite, the 3rd Round of online application window opened which attracted 38 applicants with likely investment of Rs 4,121 crore.

PM (Pradhan Mantri) Gati Shakti National Master Plan

PM GatiShakti National Master Plan (NMP) was launched on 13th October 2021 by the Hon'ble Prime Minister, Narendra Modi. It is a GIS-enabled platform that integrates data layers of infrastructure such as roads, railway lines, ports, inland waterways, telecom lines, power lines, and social sector assets, enabling comprehensive and integrated planning for multimodal logistics. An inter-ministerial institutional mechanism has been established at the Centre and State levels.

Progress under PM GatiShakti includes onboarding of 44 Central Ministries/Departments (8 Infrastructure, 16 Social, 15 Economic, and 5 others) and 36 States/UTs, with 1614 data layers comprising 726 layers from Central Ministries and 888 layers from States/UTs. Additionally, 22 Social Sector Ministries/Departments have been onboarded, with over 152 data layers(like Primary Healthcare Facilities, Post Offices, Hostels, and Colleges).

Standard Operating Procedures (SOP) for Data Quality Management have been notified for 8 infrastructure and 15 social Ministries/Departments. A model SOP has been shared with all 36 States/UTs, and Goa has notified its SOP.

The Network Planning Group has conducted 81 meetings, evaluating 213 projects with a project cost of Rs 15.48 lakh crore. Over 200 projects aimed at improving logistics infrastructure, worth Rs 5,496 crore, have been recommended by the States.

National Logistics Policy

To complement the PM Gati Shakti, National Logistics Policy (NLP), launched on 17th Sep. 2022, aims to drive economic growth and business competitiveness of the country through cost-effective logistics networks. It addresses the soft infrastructure and logistics sector development aspect, inter alia, including process reforms, improvement in logistics services, digitization, human resource development, and skilling.

There are three broad targets for achieving the vision of NLP: (i) Reduce cost of logistics in India to be comparable to global benchmarks by 2030; (ii) improve the Logistics Performance Index ranking-endeavour is to be among top 25 countries by 2030; and (iii) create data-driven decision support mechanism for an efficient logistics ecosystem. The Policy is implemented through a Comprehensive Logistics Action Plan (CLAP) which lays down a detailed plan for key action areas.

To streamline doing business in the logistics sector, 37 logistics-related digital systems/portals integrated across 10 Ministries/Departments. Tracking and tracing of India's containerized EXIM cargo is being done.

Knowledge Upgradation: Logistics-related courses introduced in 115 Universities. MoU signed with Gati Shakti Vishwavidyalaya. Centre of Excellence (CoE) for City Logistics set up at SPA (School of Planning and Architecture), Bhopal on 8th May 2024; 100+ officials trained. 7 qualification packs validated for imparting skill development.

The 6th edition of Logistics Ease Across Different States (LEADS)  report will be released in December 2024. 26 States/UTs notified their respective State Logistics policies.

Service Improvement Group (SIG): In line with National Logistics Policy 2022, an inter-ministerial consultative group constituted for resolving systemic issues related to the logistics sector.

Sectoral Plans for Efficient Logistics (SPEL): In terms of National Logistics Policy 2022, sector-specific plans to bring logistics efficiency are being prepared. SPEL for (coal) and (cement) sector have been finalized. SPEL for Food and Public Distribution, Food Processing Industry, Pharma, Fertilizers, and Steel sector are under preparation.

Make in India Initiative

The "Make in India" initiative was announced by Hon'ble PM on 15th August 2014 and formally launched by Hon'ble PM on 25th September 2014 to facilitate investment, foster innovation, build best-in-class infrastructure, and make India a hub for manufacturing, design, and innovation.

Post-launch of the Make in India (MII) initiative in September 2014, the Government has been working closely on 24 sub-sectors chosen based on Indian industries' strengths and competitive edge, the need for import substitution, potential for export, and increased employability.

Various initiatives under MII (NSWS, PDC, PMG, IILB, ODOP, IIG, etc.) are also covered under the 'Scheme for Investment Promotion,' a Central Sector Scheme for FY 2021-22 to 2025-26 with an outlay of Rs 970 crore. The objectives of SIP include investor targeting and facilitation, investment promotion, and project management activities.

National Industrial Corridor Development Programme

The objective is to create quality infrastructure ahead of demand and keep developed land parcels ready for immediate allotment, attracting investments into manufacturing and positioning India as a strong player in the Global Value Chain. The 5-year action plan focuses on developing 12 new industrial cities through the adoption of Industry 4.0 standards, in addition to 8 already approved projects. These initiatives align with the government's vision of "Atmanirbhar Bharat," aiming to build robust physical and economic infrastructure, address social and gender equity gaps, and create significant employment opportunities for locals and youth.

As of June 2024, 308 plots (1789 acres) have been allotted in four cities-Dholera, Shendra Bidkin, Greater Noida, and Vikram Udyogpuri. Currently, 2,104 acres of developed industrial land and 2,250 acres of commercial, residential, or other land use are available for immediate allotment. Commercial operations have commenced in 68 companies, and 83 projects are under construction in these cities.

Future expansion plans include the development of 12 new greenfield projects approved by the Union Cabinet on 28th August 2024, covering 25,975 acres with a project cost of Rs 28,602 crore.The projects have an employment potential of 9,39,416 and an investment potential of Rs 1.5 lakh crore. The 12 projects span less-served industrial areas across the country, requiring planned industrialization.These projects include trunk infrastructure development costs and land costs (equity of states), with land already in possession of the respective states.

The focus sectors, identified based on market demand assessments, include Semiconductors, Aerospace & Defence, IT & ITeS, Electronics & System Device Manufacturing (ESDM), Engineering & Logistics, Automobiles & Auto Components, Renewable Energy, Pharmaceuticals, Textiles & Apparels, Food & Beverages, Chemicals & Metals, and Machinery & Equipment. These industrial projects are envisioned as growth centres, driving the transformation of the entire region and fostering balanced regional development.

Intellectual Property Rights

Strengthening IP Administration: Administrative process and procedure streamlined to ensure ease of doing business around submission of Priority Documents. Facility of E-filing of documents & E-hearings - 10% rebate for E-filing of Patent, TM & Design. Introduced AI-ML-based TM search system & Gen AI based Public Chatbot (IP Saarthi). 770 Examiner of Patents & Designs have been newly recruited during 2019-2024 and a total of 470 officials have been promoted to the posts of Controllers from their respective feeder posts in the Patents office during 2022-23.

Building Strong Legislative Framework: Process reforms have expedited the examination of patents for startups, SMEs, female applicants, government departments, and academic institutions. Compliance has been reduced by simplifying Form 27 (Statement on the working of patents), waiving the fee for Form 8, and introducing Form 8A to boost the innovation ecosystem. In trademarks, 74 forms have been reduced to 8, and the procedure for registering GI authorized users has been simplified. Fee rebates include an 80% rebate for startups, MSMEs, and educational institutes for patent filings, a 75% rebate for startups in design filings, and a 50% discount for TM filings by startups.

Expand Knowledge Capacity & Skill Building: IPR Chairs have been established in 27 Central and State Universities. More than 1200 programs organized for awareness & outreach programs in schools, colleges, universities, M/o MSME and DPIIT covering more than 5 Lakhs students and faculties PAN India. 359 sensitization programs conducted for various law enforcement agencies- Police, Customs and Judicial Training institutes.

Generation of IPRs: Patents (1,03,057) granted in 2023-24 increased by seventeen folds as compared to 2014-15. Trademark registrations increased seven times in 2023-24 as compared to 2014-15. Number of Geographical Indications registered increased to 635 in 2023-24. Continuous Efforts to increase IP awareness among students, academia and industry. India's rank in Global Innovation Index (GII) increased to 39th position in 2024.

Foreign Direct Investment (FDI) Regulatory Framework

To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important ones, are open for 100% FDI under the automatic route without government approval. Almost 90% of the FDI inflow is received under the automatic route.

DPIIT's Role: DPIIT is responsible for the formulation of FDI Policy, enforced through rules notified under the Foreign Exchange Management Act, 1999 (FEMA), which is administered by the Department of Economic Affairs (DEA) and regulated by the Reserve Bank of India (RBI). The Foreign Investment Facilitation Portal (FIFP) manages proposals received under the government route and forwards them to concerned ministries.

Permitted FDI: FDI is permitted through two entry routes;the Automatic Route and the Government Route. Under the Automatic Route, no prior approval is required from the Government or RBI, with most sectors open for 100% FDI. In FY 2023-24, over 98% of FDI equity inflow was received through this route. The Government Route requires prior approval from the respective sector ministries or departments via FIFP and applies to investments in notified sectors or activities, as well as investments from countries sharing land borders with India.

Prohibited FDI: FDI is prohibited in notified sectors or activities, including Lottery Business, Gambling and Betting, Real Estate, Manufacturing of Tobacco, Atomic Energy, and other sectors not open for private investment.

FDI Reforms in India: The Government has progressively liberalized FDI policies across sectors between 2019 and 2024. In 2019, 100% FDI under the automatic route was allowed in coal and contract manufacturing, while 26% FDI in digital media was allowed under the government route. In 2020, 100% FDI was permitted in insurance intermediaries under the automatic route, and revised limits were set for the Air Transport and Defence sectors. In 2021, FDI in the insurance sector was increased to 74%, Telecom was included under the automatic route, and PSUs in the petroleum and natural gas sector were opened for FDI. In 2022, 20% FDI in LIC was permitted under the automatic route. In 2024, the space sector was liberalized.

Trends of FDI Inflow: From 2000 to 2024, a total FDI inflow of USD 991 billion was recorded, with 67% (USD 667 billion) received during the last ten financial years (2014-2024). FDI equity inflow in the manufacturing sector increased by 69%, rising from USD 98 billion in 2004-2014 to USD 165 billion in 2014-2024.

FDI Inflow in FY 2024-25 (up to June 2024): In the first quarter of FY 2024-25, FDI inflow reached USD 22.5 billion, a 26% increase compared to USD 17.8 billion in the first quarter of FY 2023-24.

Startup India

Launched by the Hon'ble Prime Minister  on 16th January 2016, the Startup India Initiative has become a launchpad for innovative ideas across the country. Over the years, several programs have been implemented under the initiative to support entrepreneurs, build a robust startup ecosystem, and transform India into a nation of job creators rather than job seekers.

More than 1,49,000 startups have been recognized under the initiative, with around 48% having at least one woman director and about 50% based in tier 2 and tier 3 cities. Recognized startups are present in every State and Union Territory, covering over 95% of the districts. These startups have reported the creation of over 16 lakh direct jobs.(self-reported)

Key initiatives under the program include the States' Startup Ranking Framework and National Startup Awards, which aim to recognize and promote the startup ecosystem. Efforts like the Bharat Startup Knowledge Access Registry (BHASKAR) and manufacturing incubation are driving product startups. Events such as Startup Mahakumbh have further strengthened the startup culture in the country.

Following the vision of the Hon'ble Prime Minister, "Don't just keep your dreams local, make them Global," Indian startups are increasingly venturing beyond India's borders. These startups are making a mark in both emerging economies and the developed world, showcasing their scalability and affordability on the global stage.

Ease of Doing Business

As part of Reducing Compliance Burden exercise India has already reduced 42,028 compliances, with 2,875 under review and 7,204 retained compliances being monitored. Of the total identification, 93% was achieved in 2021-22, 5% in 2023, and 2% in 2024 (as of September 26, 2024).

A total of 3,765 provisions have been decriminalized by Ministries, Departments, and States/UTs. The Jan Vishwas Act, 2023, decriminalized 42 Central Acts administered by 19 Ministries/Departments. The Jan Vishwas 2.0 initiative has also been launched, incorporating learnings from its predecessors.

National Single Window System (NSWS): Currently, 32 Central Ministries/Departments are onboarded onto the NSWS platform, providing 277 G2B approvals. As of October 14, 2024, 7.10 lakh approvals have been applied for, and 4.81 lakh approvals have been granted through NSWS. The platform is integrated with 29 States/UTs' Single Window Clearances (SWCs), and the Know Your Approvals (KYA) service is live for 33 States/UTs.

The Business Reforms Action Plan ( BRAP) 2024 framework, consisting of 344 reforms (57 Central and 287 State), has been circulated to States and Ministries.

Following the discontinuation of the Doing Business Report in 2020, the World Bank developed the B-READY framework for assessing 184 economies globally. India's report (Part III)to be published in April 2026.

One District One Product (ODOP)

The One District One Product (ODOP) initiative aims to foster balanced regional development across India's districts by promoting indigenous products and supporting artisans. To achieve this, 1256 products from over 780 districts in all 36 states and union territories have been identified.

The mandate of the ODOP Programme includes identifying, understanding, and solving problems associated with each of the chosen products at all points in their respective supply chains, improving the market accessibility of the chosen products, and dedicated handholding of the producers to harness the potential of their products.

The Union Budget 2023-24 allocated funds for setting up PM Ekta Malls in all states under the "Scheme for Special Assistance to States for Capital Investment," with the aim of promoting ODOP products, enhancing market access for indigenous products, and generating employment. 28 states submitted development project reports (DPRs), of which 27 were approved by the DPIIT and the Department of Expenditure, resulting in the release of funds for 27 states. Nine states have already completed the foundation stone laying ceremonies for their PM Ekta Malls.

The 2nd edition of the National ODOP Awards in 2024 witnessed participation from 587 districts, 31 states, and 23 Indian Missions abroad, with a total of 641 applications received on the Rashtriya Puraskar Portal.

Ongoing capacity building programs for stakeholders are being conducted in collaboration with the National Institute of Design (NID) and other organizations. Additionally, 110+ brands have been tagged under the ODOP initiative.

To ensure a whole-of-government approach, coordination is maintained with various departments, including the Department of Post, Department of Personnel and Training, Ministry of Food Processing Industries, Ministry of Agriculture, Ministry of Textiles, Ministry of Rural Development, and NITI Aayog.

Open Network for Digital Commerce (ONDC)

Open Network for Digital Commerce (ONDC) is a Digital Public Infrastructure (DPI) initiative launched by DPIIT to democratize e-commerce in India. It is based on an open-source methodology, employing open specifications and open network protocols independent of any specific platform. ONDC protocols standardize various operations such as cataloguing, inventory management, order management, and order fulfillment. The core principles of ONDC are openness, unbundling, and interoperability.

Institutionalized as a Section-8 not-for-profit company in 2021, ONDC has grown rapidly, recording 12.8 million orders in September 2024, with total orders reaching 113.4 million to date. Currently, the network has 115 active Network Participants (NPs), including 26 Buyer NPs, 80 Seller NPs, and 18 Logistic Service Providers. ONDC is operational in over 1,100 cities, with a network of 7.01 lakh sellers and service providers.

Industrial Park Rating System (IPRS)

Industrial Park Rating System (IPRS) is an exercise which recognizes best performing parks, identifying interventions and serving as a decision support system for investors and policy makers. This exercise is being undertaken by DPIIT, Invest India and Asian Development Bank (ADB). DPIIT released a pilot phase report in 2018 on Industrial Park Rating System aimed at enhancing industrial competitiveness.

DPIIT developed 'Industrial Park Rating System 2.0' that widened its coverage and aimed to bring in qualitative assessment further to the pilot phase. 51 SEZs, including 29 Private, were nominated by the States/UTs for the IPRS 2.0. 24 Private Sector Industrial Parks were also nominated.

Ratings were undertaken for 449 out of 478 nominations received. The feedback survey involved responses from 5,700 tenants. 41 Industrial Parks have been assessed as "Leaders" in the Industrial Park Ratings System Report. 90 Industrial Parks have been rated as under "Challenger" category while 185 have been rated as under "Aspirers" category. These ratings have been assigned on the basis of key existing parameters and infrastructure facilities etc.

National Single Window System (NSWS)

The National portal integrates the existing clearance systems of the various Ministries/ Departments of Govt. of India and State Governments. Currently, approvals of 32 Ministries/ Departments and 29 States/UTs Single Window Systems have been integrated with the NSWS Portal. A total of 277 Central approvals and 2,977 state approvals can be applied through NSWS. Information pertaining to 660 central approvals and 6,294 state approvals are available to businesses via the Know Your Approval (KYA) module.

Till 14th Oct 2024, 7.10 Lakhs approvals have been applied and 4.81 Lakh approvals have been granted via NSWS, including FDI Approvals, Petroleum-related services, Hallmarking and Start-up Registration.

PAN as single business ID (SBID): NSWS infrastructure has been revamped to support PAN as a single unique identifier for all the departments. i.e., it is mandatory for each entity registering on NSWS to submit their PAN. An SOP for ministries/states and UTS to link their databases with PAN has been drafted and shared with all the Central Ministries/Departments and States. Reverse Integration of State SWS with NSWS using PAN as SBID is in progress and it has been completed for Andhra Pradesh, Tamil Nadu, Telangana and Odisha and went live.

Reducing Compliance Burden on Businesses and Citizens

The Reducing Compliance Burden on Businesses and Citizens initiative aims to simplify, rationalize, digitize, and decriminalize government-to-business and citizen interfaces across various ministries, states, and union territories. This program focuses on simplifying procedures, rationalizing legal provisions, digitizing government processes, and decriminalizing minor technical or procedural defaults. Significant progress has been made, with 42,028 compliances reduced by ministries, departments, and states/UTs, and 3,765 provisions decriminalized.

Jan Vishwas (Amendment of Provisions) Act, 2023

Jan Vishwas (Amendment of Provisions) Act was passed decriminalizing a total of 183 provisions in 42 Central Acts administered by 19 Ministries/Departments.

The Jan Vishwas Act, 2023 is a landmark step in rationalizing these laws, removing unnecessary barriers, and fostering business growth. Decriminalization reflects this Government's move towards 'trust-based governance' where its citizens may not be imposed with criminal sanctions for minor or procedural defaults. Continued comprehensive review of Acts to segregate and decriminalize non-malicious offences and compliance defaults shall further enhance Ease of Living. This would also open a route for alternate means to ensure compliance rather than deterrence of imprisonment like notification system for reporting and penalties for non-compliance.

By introducing administrative adjudication mechanisms along with appellate mechanism, the Act reduces pressure on the justice system, helps in reducing case pendency, and facilitates a more efficient and effective justice dispensation. The direct impact of rationalizing business regulations is improving investor confidence, providing a conducive business environment, and promoting MSMEs to work without fear of imprisonment for minor offences. Minimizing compliances leads to efficient policy making, builds an overall ecosystem conducive for economic growth, encourages MSMEs in generating jobs, supports the start-up ecosystem and boosts investor confidence through transparency. Rationalized regulations are the goal as it enhances not only Ease of Doing Business but also Ease of Living. Decriminalization is a step towards creating a universe of voluntary compliances and ensuring continuous review of regulations.

New Central Sector Scheme, 2021 for Industrial Development of UT of Jammu & Kashmir

New Central Sector Scheme, 2021 for Industrial Development of UT of Jammu & Kashmir was launched as a flagship program for the duration of 2021-22 to 2036-37 with total financial outlay of Rs. 28,400 Cr. Under the Scheme, four types of incentives have been envisioned i.e. Capital investment incentive, Capital interest Subvention, GST Linked Incentive and Working Capital Interest Subvention. The scheme has received a significant response, with 1209 applications submitted through the JKNIS Portal as of March 31, 2024. Out of these applications, 787 units have been granted registration, and a total of 680 claims amounting to Rs. 204.30 crore have been released so far.

Uttar Poorva Transformative Industrialization (UNNATI) Scheme, 2024

The Uttar Purva Transformative Industrialization Scheme for the Northeast Region was notified on March 9, 2024, with a duration of 10 years from the date of notification, followed by an additional eight years for fulfilling committed liabilities. Under the Scheme, incentives will be provided to new/ existing industrial units under three categories Capital Investment Incentive, Central Capital Interest Subvention Incentive Manufacturing & Services linked incentive (MSLI) basis their eligibility under Zone A (industrially advanced districts) and Zone B (industrially backward districts). The scheme has a total outlay of Rs. 10,037 crore and consists of two parts. Part A provides incentives to eligible units and has a budget of Rs. 9,737 crore. Part B focuses on enabling activities and ecosystem development for industrialization with a budget of Rs. 300 crore.