GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF ECONOMIC AFFAIRS

RAJYA SABHA

UNSTARRED QUESTION NO. 2559

ANSWERED ON 16^TH JULY 2019

Encouragement to Private Sector Investment

2559. SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of FINANCE be pleased to state:

(a)the measures taken by Government in encouraging private sector investment in the in the domestic markets; and

(b)the breakdown of growth in private sector investment over the last three years, State/UT-wise?

ANSWER

MINISTER OF STATE (FINANCE)

(SHRI ANURAG THAKUR)

(a)The government is constantly taking various initiatives to encourage investment in the economy, including investment by private sector, which, inter-alia, include measures to improve ease of doing business, comprehensive reforms in the Foreign Direct Investment policy, various facilitation measures under flagship programmes like Make-in-India, Start-up India, reduced corporate tax rate of 25 per cent for companies with turnover up to Rs. 250 crore (this limit is proposed to be increased further to Rs 400 crore vide Finance (No.2) Bill, 2019), launch of a support and outreach program for helping the growth, expansion and facilitation of Micro, Small and Medium Enterprises sector, etc. Further, steps taken to boost private sector investment in infrastructure sectors include launching of innovative financial vehicles such as Infrastructure Debt Funds, Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), mainstreaming of Public Private Partnerships (PPPs) across infrastructure sectors through viability gap funding, periodic review of Harmonized Master List of Infrastructure Sub-sectors, and establishment of the National Investment and Infrastructure Fund (NIIF). Besides this, a Project Monitoring-Invest India Cell (PMIC) has also been set up for resolving of issues and fast tracking the setting up and expeditious commissioning of large Public, Private and Public-Private Partnership Projects.

(b)Details of State/UT-wise Private Sector Investment are not compiled by Ministry of Statistics & Programme Implementation. A statement indicating industry-wise data relating to GFCF for private corporations and households for the years 2014-15 to 2016-17 at current and constant 2011-12 prices, available with National Statistical Office is at Annexure.

Annexure

Statement referred in reply to part (b) Rajya Sabha Unstarred Question No.2559 for 16.07.2017

Gross Fixed Capital Formation (GFCF) for Private Sector at constant (2011-12) prices (Rs. In Crores)

Source: statements 7.2B and 7.2C of National Accounts Statistics 2018 publication

Gross Fixed Capital Formation (GFCF) for Private Sector at current prices (Rs. In Crores)

Source: statements 7.2B and 7.2C of National Statistics 2018 publication

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