NEW DELHI, August 23 (ANI): Foreign direct investments into India are increasing, reaching $12.1 billion in May this year, according to Commerce and Industry Minister Piyush Goyal.
He also stated that the administration is working on a mission mode to meet the $400 billion exports objective in 2021-22.
“In 2020-21, India got the greatest amount of FDI it has ever received. It increased by 10% to $81.72 billion, with FDI totaling $12.1 billion in May 2021, which is 203 percent more than May 2020 “He mentioned this while speaking to a group of business groups about encouraging exports.
He stated that exports are increasing at a strong rate, with outbound shipments increasing by 71%over 2020-21 and 23 percent during August 2014.
According to the minister, India’s average applied import tariff (tax) has decreased to 15% in 2020 from 17.6% in 2019, and the country’s applied tariffs are well within the WTO’s binding rate of 50.8 percent (permissible limit).
In terms of employment, he stated that over 54,000 companies provide around 5.5 lakh jobs and that 50,000 new businesses would create over 20 lakh jobs in the next five years.
“It is time for our industry to increase our capacity, capability, and commitment to developing resilient global supply chains,” he said, adding that the Centre expects Indian industry to suggest areas for intervention through research, handholding of exporters/manufacturers, and deeper engagement with States and Mission.
During the discussion, the industry proposed measures such as improving export competitiveness, fixing logistical issues, and states playing a more active role in strengthening exporter capacity and expanding foreign markets for Indian products.
They also proposed that pharmaceuticals and chemicals be included in the RoDTEP (Remission of Duties and Taxes on Exported Products) system.
According to Sanjay Aggarwal, president of the PHDCCI, these industries are critical to meeting the $400 billion export objective, and “it is thus requested to examine these sectors in the RODTEP plan.”
“At FY22, the government has set aside just Rs 17,000 crore for a plan that will refund embedded taxes paid on inputs utilized in exports. It’s a fraction of the government’s initial projection of Rs. 50,000 crore every year. The RoDTEP scheme’s budget, which includes all tariff lines, has to be raised.