Foreign direct investments into the country is on the rise, jumping to USD 12.1 billion in May this year, Commerce and Industry Minister Piyush Goyal said on Monday. He also said the government is working on a mission mode to achieve exports target of USD 400 billion in 2021-22.
“India has received the highest ever FDI inflow in 2020-21. It surged by 10 per cent to USD 81.72 billion and FDI during May 2021 is USD 12.1 billion, i.e. 203 per cent higher than May 2020,” he said while addressing a meeting of different industry associations on promoting exports. He said that exports are recording healthy growth and during August 1-14, the outbound shipments grew 71 per cent over 2020-21 and 23 per cent over 2019-20.
According to the minister, India’s average applied import tariff (duty) has dropped to 15 per cent in 2020 from 17.6 per cent in 2019, and the country’s applied tariffs are way below the bound rate of 50.8 per cent (permissible limit under the World Trade Organization). Talking about employment, he said more than 54,000 startups were providing about 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 capacity, capability and commitment to develop resilient global supply chains,” he said, adding that the Centre expects that the Indian industry should suggest areas for intervention through research, handholding of exporters/ manufacturers, and deeper engagement with states and Missions. During the meeting, industry suggested steps like increasing export competitiveness, addressing logistic problems, active role of states in building capacity of exporters and developing international markets for Indian products.
They also suggested inclusion of pharma and chemicals under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Industry body PHDCCI’s President Sanjay Aggarwal said these sectors are essential to achieve the target of USD 400 billion exports and “it is therefore requested to consider these sectors in RoDTEP scheme”.
“The government has budgeted only Rs 17,000 crore for a scheme that is supposed to reimburse embedded levies paid on inputs consumed in exports in FY’22. 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.