As many as 863 proposals involving total investment of $121 billion are under consideration of the project development cells (PDCs) of various ministries, the commerce and industry ministry said on Thursday.
These proposals include 272 “highly probable” (more than 90% probability of fruition) ones with envisaged investments of $41 billion; 279 “moderately probable” (51-90% probability) proposals with potential investments of $69 billion; and long-term (less than 50% probability) projects involving $11 billion in investments, it said. PDCs have been set up by the government in 29 ministries.
Investments remain critical to the country’s economic resurgence, as private consumption has been badly bruised by income losses in the aftermath of the pandemic. Gross fixed capital formation grew 11% in the September quarter, although it was aided by a conducive base (it was -8.6% a year before). Earlier this month, chief economic advisor Krishnamurthy V Subramanian told FE that private investment is gathering pace and would see a spurt once pandemic-induced uncertainties subside.
The commerce and industry ministry said the high number of investment proposals, coupled with sustained inflows of record foreign direct investments in recent years, are the culmination of several investor-friendly policies adopted by the government. These include a cut in the corporate tax rate, easing liquidity problems of NBFCs and banks, improving ease of doing business and FDI policy reforms, reduction in compliance burden and production-linked incentive schemes.
India reported a record FDI inflow of $82 billion in FY21 despite the pandemic. FDI inflows in the last seven financial years (2014-21) stood at $440 billion, about 58% of the total FDI inflow in the last 21 financial years.
To facilitate investments, measures such as India Industrial Land Bank, Industrial Park Rating System, soft launch of the National Single Window System, and National Infrastructure Pipeline and National Monetisation Pipeline have also been put in place, the ministry said.