Production Linked Incentive (PLI) Scheme

 

Keeping in view India’s vision of becoming ‘Atmanirbhar’, Production Linked Incentive (PLI) Schemes for 14 key sectors were announced with an outlay of Rs. 1.97 lakh crore to enhance India’s Manufacturing capabilities and Exports. PLI Scheme across these key specific sectors is poised to make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global value chain.

 

Key Achievements:

 

746 applications have been approved till November 2023. PLI units established in more than 150 districts (24 States). Over Rs. 95,000 crore of investment reported till September 2023, which has led to production/sales of Rs. 7.80 lakh crore and employment generation (direct & indirect) of over 6.4 lakh. Export have been boosted by Rs. 3.20 lakh crore. Incentives worth around Rs. 2,900 crores have been disbursed in FY 2022-23. There has been a value addition of 20% in mobile manufacturing within a period of 3 years. Of the USD 101 billion total electronics production in FY 2022-23, smartphones constitute USD 44 billion, including USD 11.1 billion as exports.

 

Import substitution of 60% has been achieved in the Telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment). There has been a significant reduction in imports of raw materials in the Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G, and transfer of technology has happened in manufacturing of Medical Devices such as CT scan, MRI etc.

 

Drones sector has seen 7 times jump in turnover, which consists of all MSME Startups. Under the PLI Scheme for Food Processing, sourcing of raw materials from India has seen significant increase which has positively impacted income of Indian farmers and MSMEs.

 

Production Linked Incentive (PLI) Scheme for White Goods (ACs and LED Lights)

 

It was approved by the Union Cabinet on 7 April 2021, with total outlay of Rs.6,238 crore. 64 Companies have been selected under the Scheme. 34 Companies to invest Rs.5,429 crore for Air Conditioner Components and 30 Companies to invest Rs.1,337 crore for LED Component Manufacturing. Further investments of ? Rs.6,766 crore is envisaged creating additional direct employment of about 48 thousand persons.

 

The net incremental production is expected to be more than Rs.1 lakh 23 thousand crore during the scheme period. 13 Foreign Companies are investing Rs. 2,090 crore under the scheme. 23 MSME applicants have committed investment of Rs.1,042 crore under the Scheme. 100% Applicants, who opted for gestation period upto March, 2022 have commenced production. As against the threshold investment of Rs. 1,266 crore, actual investment of Rs.2,002 crore have been done by the beneficiaries upto March, 2023. Investment of Rs.2,084 crore have been done by the beneficiaries upto September, 2023.

 

Startup India initiative

 

Startup India initiative launched by the Prime Minister, Shri Narendra Modi on 16th January 2016, has evolved into the launchpad for ideas to innovation in the country. Several programs have been implemented over the years under the Startup India initiative to support entrepreneurs, build a robust startup ecosystem, and transform India into a country of job creators rather than job seekers.

 

It is a remarkable achievement that more than 1,14,000 startups have been recognized by the Government which have reported creation of more than 12 lakh jobs with an average of 11 jobs created by each recognised startup. The DPIIT recognized startups are spread across all 36 States and UTs of the country.

 

Under the Fund of Funds for Startups (FFS) Scheme, the Government has committed about Rs. 10,229 crore to 129 Alternative Investment Funds (AIFs). A total of Rs. 17,272 crore has been invested by the AIFs in 915 startups. Under the Startup India Seed Fund Scheme (SISFS), a total sum of Rs. 747 crore has been approved to 192 incubators. Also, the selected incubators have approved a total of Rs. 291 crore to 1,579 startups.

 

The Government has also notified the establishment of the Credit Guarantee Scheme for Startups (CGSS) for providing credit guarantees to loans extended by Scheduled Commercial Banks, Non-Banking Financial Companies and AIFs. The Scheme has been operationalized on 1st April 2023.

 

More than 21,800 DPIIT recognised startups have been on-boarded on Government e-Marketplace (GeM) which have received over 2,43,000 orders from public entities, totalling Rs. 18,540 crores. GeM Startup Runway is a fast-track process for onboarding of startups on the GeM platform.

 

Under India’s G20 Presidency in 2023, a Startup20 Engagement Group was institutionalised to create a global narrative for supporting startups and enabling synergies among startups, corporates, investors, innovation agencies and other key ecosystem stakeholders. The Startup20 Engagement Group in India’s G20 Presidency held four meetings in different regions of India.

 

In 2023, Startup India organised 3 regional and 2 international capacity building and exposure visits for officials from States/ UTs to interact with and learn from policy makers, incubators, and other ecosystem enablers in national and international startup ecosystems.

 

Open Network for Digital Commerce (ONDC)

 

Open Network for Digital Commerce (ONDC) is an initiative by DPIIT aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks.

 

ONDC recorded more than 6.3 million transactions in the month of November’23 across 600+ cities. 2.3 Lakh+ sellers and service providers are active on the ONDC network spread across 500+ cities and towns across India. 59 Network Participants are live on the Network. The sellers and service providers are spread across 500+ cities expanding the geographical coverage of the ONDC network. Presently, over 3000 Farmer Producer Organisations (FPOs) have registered to be a part of the ONDC network through various Seller Network Participants. Around 400 Self-Help Groups (SHGs), micro-entrepreneurs and social sector enterprises have been onboarded on the network.

 

Mobility through the ONDC network is live in Bengaluru, Mysuru, Kochi and Kolkata with taxi and auto drivers on boarded. ONDC team has successfully conducted a pilot for exports, with Singapore being the first market to buy products from Indian sellers through the ONDC Network.

 

Nodal officer for each State/UT has been appointed to accelerate state level engagement plans and awareness campaigns and workshops have been organized across the country. The ONDC Network started with two categories (F&B and Grocery) and has expanded the categories to Mobility, Fashion, Beauty and Personal Care, Home & Kitchen, Electronics and Appliances, Health & Wellness and B2B.

 

ONDC is actively working with the Ministry of MSME to onboard MSMEs to the network through existing seller applications and also working to integrate MSME-Mart which has over 2 lakh MSMEs, with ONDC.

 

One District One Product (ODOP)

 

One District One Product (ODOP) aims to foster balanced regional development across all districts of the country by being vocal for local products. More than 1,200 products have been identified across 767 districts of the country which are showcased on ODOP portal and many of these products are also being sold on GEM and other e-commerce platforms.

 

ODOP- Ekta/Unity Mall

 

Setting up of Ekta/Unity Mall in the States was announced in the Union Budget 2023-24 for promotion and sale of their own ODOPs, GI products, and other handicraft products, and for providing space for such products of all other States. The Union Budget also provided for an outlay of Rs. 5,000 crores of fifty-year interest-free loans to States under the ‘Scheme for Special Assistance to States for Capital Investment 2023-24’, which will be linked to or allocated for certain purposes which, inter-alia, includes constructing the Unity Malls. At present, 27 States have submitted their Detailed Project Reports, out of these, 17 have been approved by Department of Expenditure.

 

Promoting Ease of Doing Business (EoDB) and Reducing Compliance Burden

 

As part of Reducing Compliance Burden exercise and based on data uploaded on the Regulatory Compliance Portal, more than 3,600 compliances have been decriminalized and more than 41,000 compliances have been reduced by various Ministries/ Departments and States/ UTs. India has reported meteoric improvement in Ease of Doing Business Ranking from 142nd rank in 2014 to 63rd rank in the World Bank Doing Business 2020 report.

 

The Jan Vishwas (Amendment of Provisions) Bill, 2023 was passed by the Parliament. Through this Amendment Act, a total of 183 provisions are proposed to be decriminalized in 42 Central Acts administered by 19 Ministries/Departments.

 

All States/UTs are being assessed under Business Reform Action Plan on the basis of implementation of designated reform parameters contained in the Action Plan such as Investment Enablers, Access to Information and Transparency, Online Single Window System, Land Allotment, Construction Permits Enablers, Labour Regulation Enablers, Environment Registration Enablers, Inspection Enablers, Obtaining Utility Permits, Contract Enforcement, Sector-specific reforms, etc. Report of BRAP 2022 is to be released soon.

 

Further under EoDB reforms, Government is moving towards centralized KYC and PAN as Single Business Identity and Regulatory Impact Assessment, thereby giving impetus to FDI in the country and domestic manufacturing activities.

 

National Single Window System (NSWS)

 

NSWS simplifies processes by providing a single platform for G2B clearances across various Ministries/Departments, reducing duplication by auto-populating form fields based on investor profiles. It presently offers approvals from 32 Central Ministries/Departments and 25 States/UTs.

 

The NSWS Portal has successfully processed over 2,55,000 approvals as of November 2023, marking a significant milestone in streamlining processes for both Central and State/UTs. It incorporates government schemes like Vehicle Scrapping, Indian Footwear and Leather Development (IFLDP), Sugar and Ethanol Policies, facilitating applications for over 400 investors in IFLDP, 25 for Registered Vehicle Scrapping Facility, and 19 for Automated Testing Stations.

 

Make in India 2.0

 

Since its launch, Make in India has made significant achievements and is now focusing on 27 sectors under Make in India 2.0. DPIIT is coordinating Action Plans for 15 manufacturing sectors, while the Department of Commerce is coordinating for 12 service sectors.

 

Now, DPIIT is working closely with 24 sub-sectors which have been chosen keeping in mind the Indian industries strengths and competitive edge, need for import substitution, potential for export and increased employability. These 24 sub-sectors are – furniture, air-conditioners, leather and footwear, ready to eat, fisheries, agri-produce, auto components, aluminium, electronics, agrochemicals, steel, textiles, EV components and integrated circuits, ethanol, ceramics, set top boxes, robotics, televisions, close circuit cameras, toys, drones, medical devices, sporting goods, gym equipment. Efforts are on to boost the growth of the sub-sectors in a holistic and coordinated manner.

 

Investment outreach is being done through Ministries, State Governments and Indian Missions abroad; Investment Identification of potential investors, handholding and investment facilitation is done through Invest India.

 

Public Procurement (Preference to Make in India) Order, 2017

 

The PPP-Mll Order gives preference to locally manufactured goods, works and services in public procurement, thereby giving boost to industrial growth in the country and enhance income and job opportunity for its masses.

 

Keeping in view the mandate of "Atmanirbhar Bharat", DPIIT has revised its Public Procurement (Preference to Make in India Order, 2017) on 16.09.2020 with the following salient features:

 

Re-classification of suppliers

i. ‘Class-I local supplier’ – Suppliers offering items with equal to or more than 50% local content

 

ii. ‘Class-II local supplier’ - Suppliers offering items with equal to or more than 20%   but less than 50% local content

 

iii. ‘Non local supplier’ - Suppliers offering items with less than 20% local content

 

Nodal Ministries/ Departments are authorized to notify a higher minimum local content requirement for any item, i.e. higher than 50/20%, if they deem fit

Purchase preference for Class-I local suppliers (suppliers with more than 50% local content).

Suppliers offering items with less than 20% domestic local value addition can't participate in domestic/national bidding process.

For purchases with estimated value less than Rs. 200 Crore, no Global tender enquiry will be issued.

 

 

Five states namely Manipur, Nagaland, Himachal Pradesh, Andhra Pradesh and Goa have already adopted PPP-MII Order, 2017. DPIIT is making continuous efforts to encourage the remaining States/UTs to either adopt PPP-MII Order or have similar order, similar to PPP-MII Order, 2017. 

 

PM GatiShakti National Master Plan

 

In 62 Network Planning Group meetings held so far under PM GatiShakti (PMGS), more than 123 big-ticket infrastructure projects, worth Rs. 12.08 lakh crores, have been examined on PMGS principles.

 

PM GatiShakti National Master Plan (NMP) has 1463 data layers today, belonging to 39 Central Ministries / Departments (585) and 36 States/UTs (878). Individual portals of 39 Central Ministries (Infrastructure, Social, and Economic) have been developed and integrated with NMP. 22 Social Sector Ministries have been onboarded on PM GatiShakti with over 200 data layers mapped on NMP (like Primary Healthcare Facilities, Post Office, Hostels, Colleges, PVTG- Particularly Vulnerable Tribal Groups, etc).  

 

State Master Plan (SMP) portals for 36 States/UTs have been developed for mapping and synchronised integration of infrastructure assets. Five Regional Workshops on PM GatiShakti was conducted between February and April this year, covering all 36 States/UTs for larger sensitization, exchange of knowledge, and demonstration of use cases by Ministries and the States/UTs.

 

To integrate GatiShakti further in all infrastructure works in the States, Department of Expenditure (DoE) directed to utilize NMP for mapping and planning all the infrastructure projects proposed under the Scheme for Special Assistance to States for Capital Investments for 2023-24 of Rs. 1.3 lakh crores. On 11 July 2023, DoE issued the notification for all State Governments to map and plan the capital investment projects approved under the Scheme using the PM GatiShakti platform. This will give further fillip to usage of PM GatiShakti NMP.

 

Logistics Ease Across Different States (LEADS)

 

The 5th edition of LEADS annual exercise - LEADS 2023 report was released by the Union Minister for Commerce and Industry, Shri Piyush Goyal on 16th December, 2023.

 

National Logistics Policy, 2022

 

On completion of one year of launch of National Logistics Policy significant progress has been made to achieve NLP targets, viz. reduction in logistics cost, improvement in India’s ranking in the Logistics Performance Index (LPI), and create data-driven decision support mechanism for an efficient logistics ecosystem.

 

Progress made on the eight action areas under the Comprehensive Logistics Action Plan (CLAP), defined under the NLP, is as follows:

 

The Service Improvement Group (SIG) is well established with the involvement of more than 30 business associations in the field of logistics; critical issues concerning logistics services are raised by business associations on the E-LoGS platform. SIG and E-LoGS have together established a robust mechanism to address and resolve logistics issues/ promote logistics efficiency.

7 SIG and 1 special SIG meetings with Customs and a meeting with Member Customs have been conducted.

108 logistics-related issues were received on E-LoGS platform, of which 16 issues were resolved, 58 are in progress, 19 are under review, and 15 are not admissible.

A NPG meeting was held to discuss Sectoral Plan for Efficient Logistics (SPEL) by individual line Ministries/Departments on 16th November 2023 for prioritizing cross-sectoral cooperation and to focus on the optimization of modal mix for holistic planning.

Progress made in implementation of the Comprehensive Logistics Action Plan (CLAP) is as below:

Infrastructure gaps are being addressed and digital initiatives undertaken (under National Committee on Trade Facilitation).

To bring holistic focus on ‘logistics’ in public policy at State level, States/UTs are developing State Logistics Plans (SLPs) aligned with NLP. So far, 23 States have notified their respective State Logistics policies.

Draft Sector Specific Plans developed by M/o Coal and discussed in 6th EGoS.

Human Resource Development and Capacity Building:

 

To further give traction to training and capacity building in Logistics and Infrastructure Development, Syllabus and training modules are being developed with the Capacity Building Commission (CBC), which will be imparted through webinars, workshops, digital training, physical training, integrating courses with the existing curriculum of Central Training Institutes (CTIs) and Administrative Training Institutes (ATIs). 

 

A webinar on PM GatiShakti was held on 04 August 2023 with CBC for all Ministries and Business/Trade Associations, etc. As on date, 17 CTIs and 19 State ATIs have appointed Nodal officers for the same.

 

MoU signed between Logistics Division of DPIIT and GatiShakti Vishwavidyalaya (Ministry of Railways) on 4th October 2023 for capacity building, outreach, knowledge sharing, and related aspects on PM GatiShakti.

 

Progress on Unified Logistics Interface Platform (ULIP):

 

The integration of ULIP with 35 systems of 08 different Ministries through 113 APIs, covering 1,800+ fields has been completed. 699 industry players have been registered on ULIP. Over 125 private companies have signed NDA, and this will enhance supply chain visibility and boost trade. Over 65 applications have been made live. GST data is being integrated with ULIP to provide end-to-end multimodal tracking of cargo and demand-supply mapping for trade.

 

Project Monitoring Group (PMG)

 

The PMG portal has been upgraded from an issue-based resolution mechanism to a Milestone-based monitoring system. The new system will ensure proactive monitoring of projects and will help in initiating course correction measures in time. This will put the Project Monitoring Group at the forefront of driving transformational change in the infrastructure space.

 

Till November, 2023 PMG Portal has on-boarded 2426 projects of worth Rs 61.90 lakh crore. These include all important mega infrastructure projects including high impact GatiShakti projects and critical infrastructure gap projects. PMG has facilitated resolution of 6978 issues worth Rs. 51.90 lakh crore.

 

Industrial Corridor Programme

 

The Programme aims to develop futuristic industrial cities in India at par with the world’s best manufacturing and investment destinations. It will create employment opportunities and economic growth leading to overall socio-economic development. Few approved projects are: Dholera Special Investment Region (Gujarat), Shendra Bidkin Industrial Area (Aurangabad), Integrated Industrial Township, Vikram Udyogpuri etc. A total of 274 Plots (1,707 acre) allotted till November, 2023, attracting investments from companies of South Korea, Russia, China, UK, Japan as well as from India including MSMEs.

 

Industrial Performance

 

Industrial production as measured by Index of Industrial Production (IIP) expanded by 6.9% during April-October 2023-24 over the corresponding period last year on the back of broad-based growth. All three sectors — Mining, Manufacturing and Electricity - recorded robust growth during the period.

 

There has been a consistent recovery after COVID-19 pandemic. In the FY 2021-22, industrial production recovered from the COVID pandemic and registered a double-digit growth of 11.4%. Industrial production further expanded by 5.2% in FY 2022-23. During April to October period of FY 2023-24, IIP registered cumulative growth of 6.9% over the corresponding period of previous year. Index of Manufacturing, Mining and Electricity sector grew by 6.4%, 9.4% and 8.0% respectively during the aforesaid period.

 

Trends in Growth of Eight Core Industries

 

The Index of Eight Core Industries (ICI) measures the performance of eight core industries i.e. Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Petroleum Refinery Products, and Steel. The industries included in the ICI comprise 40.27 % weight in the Index of Industrial Production (IIP). During 2022-23, the ICI recorded an annual growth of 7.8% compared to average growth rate of 1.5% during the last 3 years i.e. 2019-20 to 2021-22. During Apr - Oct 2023 in the current Financial Year 2023-24, output of core industries further increased by 8.6% over the corresponding period last year. Among the eight core industries, Steel, Coal and Cement registered double-digit growth of 14.5%, 13.1% & 12.2% respectively.

 

Foreign Direct Investment

 

India is one of the most attractive FDI destinations in the world today. The Government has put in place an investor friendly Foreign Direct Investment (FDI) policy under which most sectors except certain strategically important sectors are open for 100% FDI under the automatic route.

 

Measures taken by the Government on FDI Policy reforms have resulted in increased FDI inflow in the country. FDI inflow in India stood at USD 36 billion in 2013-14 and registered its highest ever annual FDI inflow of USD 85 billion in the financial year 2021-22. During FY 2022-23, FDI inflow of USD 71 billion (provisional figure) has been reported. During the current financial year, 2023-24 (up-to September 2023) FDI worth USD 33 billion has been reported.

 

FDI inflow in the last 9 financial years (2014-23: USD 596 billion) has increased by 100% over the previous 9 financial years (2005-14: USD 298 billion) and is nearly 65% of the total FDI reported in the last 23 years (USD 920 billion). FDI equity inflow in the manufacturing sectors in the last 9 financial years (2014-23) (USD 149 billion) has increased by 55% over the corresponding period of the previous nine years (2005-14) (USD 96 billion). These trends in India’s FDI are an endorsement of its status as a preferred investment destination amongst global investors.

 

IPR Strengthening

 

Various Policy and Legislative reforms have been undertaken in last 9 years in the area of institutional strengthening and process digitalization. India’s rank in the Global Innovation Index (GII) amongst 132 economies has improved from 81st in 2015 to 40th in GII 2022 ranking and in 2023 India has retained its 40th position.

 

The number of Patents granted has seen an eight-fold growth from 5978 in 2014-15 to 47735 in 2023-24 (upto 30th Nov, 2023). Number of Designs registered has recorded a two-fold increase from 7147 in 2014-15 to 15506 in 2023-24 (upto 30th Nov, 2023). Patents filed by women have seen a rise of more than 345 times, from 15 in 2014-15 to 5183 in 2023- 24 (upto 30th Nov, 2023).

The negotiations for the proposed free trade agreement (FTA) between India and Oman are moving at a fast pace and the pact is likely to be signed next month, a senior government official said. Officials of the two countries concluded the second round of talks for the pact, officially dubbed as Comprehensive Economic Partnership Agreement (CEPA) earlier this month in Muscat.

 

'With Oman, there is a very good progress and both sides are very eager to conclude this deal. It may be signed in January 2024,' the official said.

 

The negotiations on the text of most of the chapters have been concluded by both sides.

 

Oman is India's third-largest export destination among the Gulf Cooperation Council (GCC) countries. The pact would help increase exports from India post the free trade agreement, as currently over 80 per cent of its goods enter Oman at an average 5 per cent import duties, and there are not many trade barriers.

 

According to think tank GTRI's (Global Trade Research Initiative) report, Indian goods worth USD 3.7 billion such as gasoline, iron and steel, electronics, and machinery will get a significant boost in Oman, once both sides reach a comprehensive free trade agreement.

 

Export sectors which could get a boost in Oman include motor gasoline (exports worth USD 1.7 billion), iron and steel products (exports worth USD 235 million), electronics (USD 135 million), machinery (USD 125 million), textiles (USD 110 million), plastics (USD 64 million), boneless meat (USD 50 million), essential oils (USD 47 million), and motor cars (USD 28 million), will benefit from duty elimination, the report has stated.

 

India has implemented a trade agreement with the UAE also in May 2022. Both Oman and UAE are members of the Gulf Cooperation Council (GCC).

 

'Oman's GDP is about USD 115 billion and its population is 5 million. Oman's higher per capita income (USD 25,060) compared to India's (USD 2,370) could mean a demand for more diversified and possibly higher-value goods and services in Oman, which India could aim to supply,' GTRI Co-Founder Ajay Srivastava has said.

 

The bilateral trade stood at USD 12.39 billion in 2022-23. India's exports have increased from USD 2.25 billion in 2018-19 to USD 4.48 billion in 2022-23. Imports from the Gulf nation were USD 8 billion in the last fiscal.

 

The UAE has initiated the process of channelising its long-promised $2-billion investments into food parks in India, starting with Gujarat, after the two countries sorted out concerns on curbs imposed by the Essential Commodities Act, sources have said.

 

The investments are being made as part of the four nation I2U2 (India-Israel-UAE-USA) initiative to develop a series of integrated food parks across India to enhance food security in the Middle East and South Asia.

 

'India has agreed to waive ECA curbs for a specified volume of commodities (coming under the ambit of the Act) that would be proposed to be processed and exported from the parks by the investors. The UAE will specify the quantities at a later stage of development,' a source tracking the matter told businessline.

 

Park in Kandla

The first food park is likely to be set up on land near Kandla where the investors would get into contract farming arrangements with locals. 'The UAE is in talks with the State government for various permissions and work is expected to start soon. The investments will be made in tranches,' the source added. 

 

The UAE had first promised in 2018 to invest in food parks in India which later got dovetailed into the I2U2 initiative announced at the Leaders’ Summit in July 2022. It was virtually attended by Prime Minister Narendra Modi, US President Joe Biden, Israeli Prime Minister (former) Yair Lapid and UAE President Sheikh Mohamed bin Zayed Al Nahyan.

 

These food parks would incorporate state-of-the-art climate-smart technologies to reduce food waste and spoilage, conserve fresh water, and employ renewable energy sources, per the joint statement signed by the leaders at the Summit.

 

Shortlisted crops

The UAE has been worried about the ECA as three of the shortlisted crops to be processed in the food parks – onions, rice and bananas – are covered under the Act. Since the ECA allows stock-holding limits to be imposed by the government if a certain commodity is in short supply, it could affect business prospects in the food parks.

 

'Now that the Centre has agreed that ECA would not apply on commodities processed in the food parks up to a certain quantity requested by the UAE, the problem has been sorted out,' the source said.

The government has extended current effective zero import duty on masur dal (lentil) till March 2025 in order to ensure steady supply of the key pulse from international market and keep domestic prices under check. However, the government has not extended the current import duty structure on three crude edible oils -- palm oil, soyabean oil and sunflower oil.

 

According to a finance ministry notification, the exemption of zero import duty on masur as well as agri-infra cess of 10 per cent has been extended till March 2025.

 

This exemption on masur was valid till March 2024.

 

'In some of the pulses, we don't produce as much as we consume. For stability of import policy, the current exemption has been extended on masur till March 2025 so that farmers of the producing countries get clear signal from India and plan their sowing,' Consumer Affairs Secretary Rohit Kumar Singh told PTI.

 

The basic import duty on masur was reduced to zero in July 2021, while the exemption from 10 per cent agri-infrastructure cess was given in February 2022. Since then, it was extended multiple times and currently was valid till March 2024.

 

A finance ministry official said that the notification is only for extending zero duty and exemption of agri-infra cess for masur alone, not three crude edible oils.

 

India is the world's largest producer and import of pulses. It imported 24.96 lakh tonnes during 2022-23.

A number of things need to be developed across different agricultural pockets from north to south Bengal, West Bengal Food Processing Industries and Horticulture minister Arup Roy said at a conclave organized by Indian Chamber of Commerce (ICC). The West Bengal government has undertaken different activities to support its agricultural sector.

 

'There are a lot of things that need to be developed across different agricultural pockets from north to south of Bengal. Malda is famous for its mangoes and lychee while the demand for oranges from Darjeeling moves upwards. There is another healthy product called Makhana that has gained popularity globally. The food processing units leverage technological innovations and help reshape the scenario.'

 

Emphasizing on the health hazards experienced by people due to the consumption of improper food products, OSD & state Commissioner of Food Safety under Health & Family Welfare Department Tapan Kanti Rudra said, 'The industry is ever flourishing and our role is regulatory. We stand as facilitators to the sector. We look after creating logistics, human resource development, and sharing knowledge and information.'

 

Rudra mentioned that the alarming rise of non-communicable disease is a concern. 'Food borne diseases affect 60 crore people worldwide while 200 types of water borne disease spread across worldwide,' Rudra said, adding 'Large scale prevalence of anaemia has also surfaced. A survey conducted between 2014-15 indicated that 54 percent of children in the age group of 0-5 years suffer from anaemia. This indicates that our cereals are lacking micronutrients.'

 

'The FSSAI has notified food standards mentioning the standards of food. Food fortification has been undertaken to cure anaemia. Moreover, 2023 has been declared as the International Year of millet. Millet-based food products are healthy and in highs demand. Food sample analysis is another measure to ensure good quality of food. We have three food testing labs. Mobile food testing labs are also functional these days,' Rudra said.

 

Sharing different initiatives and policies initiated by the West Bengal government to ensure development in the food and agricultural sector, state Director Food Processing Industries Kasturi Sengupta stated, 'The West Bengal government has undertaken different activities to support its agricultural sector. It is the largest producer of rice and the second largest producer of potato in India. The industrial policy has put focus on agro-based products. The state has supported participatory farming to grow fruits and vegetables by entrepreneurs.'

 

'Apart from introducing the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, it is providing subsidies for common infrastructure, branding and marketing. The state has also introduced the West Bengal Food Processing Unit in 2021. We will extend all possible support to the ones interested in investing in the department,' Sengupta said.

 

Speaking on consumer behaviour and small-scale entrepreneurs D Bandyopadhyay, Managing Director, Herald Food & Commodities Private Limited, stated, 'Despite all odds, the food sector is trying to develop and excel in West Bengal. The eastern region is quite rich in agricultural production and dependent on agriculture. Secondly, consumer behaviour is rapidly changing. Our vision needs to change and launch new products acceptable by the current consumers. We are focusing on the next generation entrepreneurs.'

 

Shaurya Veer Himatsingka, ICC member & owner of Elmac Foods, said, 'India being rich in the agricultural domain is slated to grow at a cumulative annual growth rate of 99.4 percent between 2022 to 2027…From AI to machine learning, Assamese agriculturists are using these technologies in their efforts towards sustainable practices.'

 

ICC hosted the West Bengal Food Processing Conclave on Thursday with primary focus on technological upgradation and awareness of financial schemes in the state’s agricultural sector.

The export of Indian-made spirits is poised to surge beyond the USD 1 billion mark in the coming years, driven by a robust demand for these beverages in the global market. Rajesh Agrawal, Additional Secretary at the Ministry of Commerce, highlighted this projection on Thursday, emphasizing the accelerating popularity of Indian-made spirits worldwide.

 

In 2022-23, the export value of Indian spirits reached USD 325 million, and with the escalating global demand, experts anticipate this figure to surpass USD 1 billion in the near future.

 

Speaking on the subject, Agrawal stated, 'Global market of alcoholic beverages stands today at USD 130 billion and Indian exports of these products was USD 325 million in 2022-23. As the global demand for Indian spirits is growing, we expect that in a few years, exports of Indian spirits will cross USD 1 billion. In our negotiations for a free trade agreement with the countries we are trying to get duty concessions for Indian spirits'.

 

Negotiations for free trade agreements (FTAs) play a crucial role in facilitating the growth of Indian spirits exports.

 

Agrawal noted, 'The world trade in the segment is dominated by scotch which is around USD 13 billion. The condition for scotch is that it must be matured for a period of three years and in our FTA negotiations it has not been resolved yet. As per the Indian alcohol and beverage industry Indian climate is warm and here whiskey matured in one year. That is the issue we are trying to negotiate and resolve in our FTAs.

 

'Agrawal said, 'Law in many countries prohibits the one-year maturity period but some countries have their own standards. Recently Confederation of India Alcoholic Beverage Companies (CIABC) has sought better market access for Indian products in the EU. CIABC, the apex body of Indian alcoholic beverage manufacturers, has demanded that the EU should remove the non-tariff barriers which prevent the vast majority of Indian products being sold in the EU'.

 

'CIABC, hitch has been constantly raising its concerns with the government on the matter, has also reiterated that the trade deal with the EU on alcoholic beverages should be no different from the UK, negotiations for which are currently underway. In discussions about the global alcohol and beverage industry, Agrawal highlighted the dominance of Scotch, which commands a market worth around USD 13 billion', said Agrawal.

 

Recently, the Confederation of Indian Alcoholic Beverage Companies (CIABC) has been actively advocating for improved market access for Indian products in the European Union (EU).

 

CIABC, representing Indian alcoholic beverage manufacturers, has urged the EU to eliminate non-tariff barriers hindering the entry of most Indian products into the EU market.

 

CIABC has emphasized that the trade deal with the EU on alcoholic beverages should mirror the one negotiated with the UK.

 

CIABC Director General Vinod Giri stressed the need for the EU to reconsider regulations to ensure a fair and mutually beneficial trade agreement between India and the EU.

 

'The most notable is the condition that for a product to qualify as a whisky, it must be matured for a period not less than three years [Sub Para 2(a)(iii) of Annex 1 of Regulation (EU) 2019/787], and for brandy for one year [Sub Para 5(a)(ii) of Annex 1 of Regulation(EU) 2019/787],' said CIABC Director General, Vinod Giri.

 

'It has been highlighted several times, along with scientific substantiations, that such long maturation is not applicable under warm Indian climate. We believe that it is effectively a non-tariff barrier since long maturation increases the cost of Indian products by 30-40 per cent as spirit evaporates 10-15 per cent every year under Indian climate (compared to 1-2 per cent in Europe) and the cost of capital deployed during maturation (8-10% per annum in India compared to 2-3 per cent for Europe). We firmly believe that if the EU does not repeal the law pertaining to the maturation, any trade agreement will be one-sided favouring only the EU and will do nothing for the Indian industry,' he added. 

India has strongly objected to efforts of certain countries to push a proposal on investment facilitation at the WTO, saying the agenda falls outside the mandate of the global trade body and cannot be deliberated in formal meetings. According to the statement of the Indian delegation in a meeting of the General Council of the World Trade Organisation (WTO), held during December 13-15, negotiation on investment does not belong to the WTO.

 

'I would like to reiterate that Investment Facilitation for Development (IFD), which supposedly facilitated investment, did not pertain to multilateral trade relations. Investment per se is not trade,' the statement said.

 

It added that investment covers a wide range of assets or enterprises subject to a separate universe of obligations.

 

'The negative mandate did not allow the Members, desirous of IFD, to pursue it in a multilateral forum upon a consensus,' the statement said.

 

It added that certain members began an informal process that did not have any legal sanctity, and now, at the end of their informal process, they are back to consensus seeking on their outcome of an informal process the foundation of which is devoid of consensus.

 

'What could be more ironic in WTO than this, i.e., violating the treaty-embedded right of members to start consensus-based negotiations on mandated issues, and then at the end of such unrecognized and unlawful process, seeking consensus from those very members whose treaty-embedded right was intentionally vitiated in the first instance,' it added.

 

The General Council is the highest decision-making body of the WTO after the Ministerial Conference (MC), which meets once in two years.

 

The MC 13 meeting is scheduled from 26 to 29 February 2024 in Abu Dhabi, United Arab Emirates.

 

Member countries who are pushing for the proposal include Chile and Korea.

 

Earlier also, India raised its serious concerns over bringing issues related to investment facilitation within the ambit of WTO saying that these are bilateral matters and can not be decided at multi-lateral forums.

 

The statement said that it is a matter of 'serious concern' that the proponents of IFD are trying to force their interests into the rule-based WTO multilateral system in violation of rules.

 

As far as the investment aspects of trade are concerned, the agreement on TRIMS (Trade-Related Investment Measures) and the GATS (General Agreement on Trade in Services) already deal with trade-related investment aspects in goods and services, respectively.

 

The TRIMS deals with certain trade-related investment measures that can restrict and distort trade.

 

The GATS dealt with the supply of services through commercial presence in the territory of any other member, which was related to trade in services and not purely investment.

 

India added that if some countries want to negotiate the subject, they should do it outside the formal structure of the WTO.

 

It said that the document placed by those countries is an outcome of an 'illegal' process nurtured in a rule-based multilateral system, and 'therefore, we would not like it to be placed before the ministers'.

 

Trade ministers of the 164 countries would gather in Abu Dhabi for MC 13.

 

'Negotiation on investment does not belong to WTO. India's concern emanates from the fact that proponents of IFD, a joint statement initiative (JSI) process, should not be attempting to bring a non-mandated, non-multilateral issue to the formal process in the WTO in violation of the WTO framework and fundamental rule of consensus-based decision-making for starting a negotiation,' the statement said.

 

There has not been any Ministerial mandate for starting negotiations on investment-related matters, it added.

India’s oilmeal exports will likely top 4.5 million tonnes (mt) with rapeseed meal accounting for 2.5 mt and soyabean meal 1.5 mt during the current fiscal. Exports are set to surpass 4.34 mt last fiscal despite a ban on shipments of deoiled rice bran, the Solvent Extractors Association of India (SEA) has said. 'Cumulative exports of all oilmeals till November (in the current fiscal) have increased by around 21 per cent over the preceding period and crossed 28 lakh tonnes,' said SEA President Ajay Jhunjhunwala.

 

Soyameal shipments have turned buoyant as India has gained a competitive edge, while there is short-supply from Argentina. 'Also exports of rapeseed meal was a record at 2.30 mt last fiscal and the trend is continuing in the current year with exports of around 1.6 mt till November. It will likely cross last year’s record export,' he said. 

 

Exports of castormeal are on track and are a notch above last year’s level.   

 

Rabi sowing up

Jhunjhunwala said sowing of oilseeds in the current rabi season at 99.11 lakh hectares (lh) has exceeded the five-year average of 84.45 lh and 98.1 lh last year. Rapeseed/mustard leads the pack with a coverage of 92.45 lh exceeding the 5-year average area of 73 lh and 90.16 lh a year ago.

 

The acreage has increased mainly in Uttar Pradesh, the SEA president said, adding the area under groundnut, sunflower, safflower and sesamum are down a tad currently, though. 

 

The agro-climatic conditions during the rabi season are expected to be close to normal, indicating a promising harvest of rabi oilseed crop, he said.

 

Referring to the ban on exports of deoiled rice bran, Jhunjhunwala said the Centre extended the ban despite the industry’s appeal that not permitting exports will not reduce the price of dairy products. Solvent extraction units will lose their export market that has been developed painstakingly, he said.

 

Refined oils duty difference

The SEA president said with the duty difference between crude and refined edible oils being only 8.25 per cent, imports of refined, bleached and deodorised (RBD) palmolein in November doubled compared with October. 'This is to the detriment of our processing industry and of benefit to the  exporting countries such as Indonesia and Malaysia. The association has urged the government to increase the import duty on refined edible oils to at least 15 per cent higher than that on crude edible oil to enable our domestic industry to have a level playing  field,' he said.  

As the Indian government has announced to provide 95,000 tonnes of rice to Nepal on quota basis after imposing a ban on the export of non-basmati rice, the Nepal government has asked the private importers to coordinate with the Indian supplier.

 

All Nepali companies should import rice from the state-owned National Cooperative Exports of India.

 

On October 18, the Indian government permitted the export of 95,000 tonnes of non-basmati white rice to Nepal following a ban on July 20.

 

On Sunday, the Ministry of Industry, Commerce and Supplies published a notice requesting the importers to send their details to the Indian state-owned supplier to import rice.

 

As per the notice, each Nepali private-sector importer firm will be allowed to bring in up to 5,000 tonnes of rice on a first-come, first-served basis.

 

'We have already requested the Indian government to provide 5,000 tonnes of rice to each Nepali private firm or company. The private sector can directly contact the National Cooperative Export of India and import rice by reaching an agreement on price and quality between the buyer and seller,' said Ram Chandra Tiwari, joint secretary of the Ministry of Industry, Commerce and Supplies.

 

'To prevent cartelling, we have set a quota of up to 5,000 tonnes for each private firm or company,' said Tiwari.

 

Out of the 95,000 tonnes, 30,000 tonnes will be imported by government corporations and the remaining amount will be imported by private-sector suppliers, Tiwari said.

 

India imposed a ban on the export of non-basmati rice on July 20 India to keep its food reserve intact amid the threat of El Niño disruptions.

 

On August 25, a month after imposing an export ban on non-basmati rice, India slapped a 20 percent export duty on parboiled rice.

 

Following the ban, Nepal’s Ministry of Industry, Commerce and Supplies in August first week, formally requested export quotas from the Indian government, seeking 1 million tonnes of paddy and 100,000 tonnes of rice.

 

Nepal requires 4 million tonnes of rice annually to feed its population, and the shortfall is made up through imports from India. Nepal has been importing rice and paddy from India in large quantities for the past decade.

 

Nepal is heavily dependent on imported food, mostly from India.

 

In the 2021-22 Indian fiscal year, which starts on April 1 and ends on March 31, Nepal imported 1.4 million tonnes of rice—1.38 million tonnes of non-basmati and 19,000 tonnes of basmati rice—from India, the highest amount on record, according to an Indian government report.

 

In terms of value, rice imports came to $473.43 million or just over Rs60 billion.

 

Imports of basmati and non-basmati rice dropped sharply to 812,028 tonnes in 2022-23 after India strangled exports. The total value of the imports was $283.94 million or Rs37.48 billion.

 

The price of rice rose instantly in Nepal after India announced an export ban, though traders say that prices have started to decrease to some extent.

 

Despite having adequate inventory, traders increased prices under the pretext of the ban, analysts said.

 

Within a week of the rice ban by India, prices in Nepal of all types of rice increased by Rs200 to Rs250 per 20-kg or 25-kg bag.

 

India has placed controls on sugar, wheat and rice shipments and currently onion as well.

 

India, the world's largest rice exporter, said it was imposing a ban on the export of non-basmati white rice to keep its food reserve intact amid the threat of El Niño disruptions.

 

India accounts for more than 40 percent of the world’s rice exports, and low inventories with other exporters mean any cut in shipments could inflate food prices already driven up by Russia's invasion of Ukraine last year and erratic weather.

 

According to Indian media reports, rice smuggling from India to Nepal has surged to alarming levels since the southern neighbour banned exports of the staple grain.

 

According to the reports, villagers along the India-Nepal border in Maharajganj, a town in the Indian state of Uttar Pradesh, are mostly involved in smuggling rice into Nepal.

 

In September 2022, India had banned exports of broken rice and imposed a 20 percent duty on exports of various grades of rice as it sought to boost domestic supplies and calm local prices after a below-average monsoon rainfall curtailed planting.

The National Bank for Agriculture and Rural Development (NABARD) will hold a three-day agri expo here to promote products from over 50 farmer-producer organizations (FPOs).

 

The expo to be held at Dilli Haat will see the participation of FPOs from 21 states, NABARD said in a statement.

 

The exhibition will feature FPOs supported by NABARD and the Small Farmers Agribusiness Consortium (SFAC) under Government of India's flagship scheme of 10,000 FPOs who will be showcasing a wide range of organic and millet-based agri-products for sale, it said.

 

The exhibition aims to shed light on the incredible efforts and achievements of FPOs in transforming the agricultural landscape of India, it said.

 

As part of the ongoing commitment to revolutionizing agricultural commerce, the exhibition will also feature the onboarding of FPOs onto the Open Network for Digital Commerce (ONDC) platform, it said.