Around 860 projects with an estimated investment of $121 billion are under active consideration of various government departments, the commerce and industry ministry said on Thursday, adding more than a fourth of these projects are highly probable.
These 272 projects—having more than 90% probability—are worth $41 billion, while another 279 moderately probable projects are worth $69 billion and long-term projects are worth $11 billion, the ministry said in a statement. The moderately probable projects have a probability of 51-90% and long-term projects have less than 50% probability.
These projects are being supported by special cells set up in 29 central ministries which are working closely with state governments to fast-track investments.
“All project development cells are executing clearly defined investor engagement strategies,” the ministry said. Identifying and engaging with prospective investors is a key part of it.
Attracting investments into the country, boosting production, and creating modern infrastructure are priorities for the Narendra Modi administration, which is offering production incentives and tax concessions and is taking steps towards cutting down red tape. Policymakers are hoping that the production incentives, along with a customs duty structure, which encourages raw material imports but discourages finished product imports, would help make India a key part of the global supply chains. Briefing reporters, a ministry official said on Thursday that guidelines for inviting investment proposals under the production incentive scheme are being worked out in the case of drones, drone components, and textile products.
These schemes have been specifically designed to attract investments, ensure efficiency, and bring economies of size and scale in the manufacturing sector and make Indian manufacturers globally competitive, the ministry statement said. It is expected that the production-linked incentive schemes will lead to significant manufacturing activity of $504 billion plus, create more than 10 million jobs and boost economic growth over the next five years and beyond, said the statement.
In 2019, the Union government offered an alternative corporate tax rate regime, sought to address the liquidity problems of businesses, non-bank lenders, and banks and took steps to improve ease of doing business.
In FY21, India received its highest ever annual FDI Inflow of $81.97 billion, as per provisional official estimate. Singapore, Mauritius, USA, Netherlands, and Japan are among the major sources of foreign direct investments into India.
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