Speed Post News Network
New Delhi : The Union Cabinet under the leadership of PM Narendra Modi has given its approval for setting up of an “Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs)” in Ministries/Departments of Government of India for attracting investments in India. This new mechanism will reinforce India’s vision of becoming a US$ 5 trillion economy by 2024-25.
The Government is determined to put in place an investment friendly ecosystem that strongly supports the domestic investor as well as FDI and will boost the economy manifold. DPIIT proposes strategic implementation of an integrated approach that will eventually bring about synergies between Ministries/Departments and among the Central and State Governments in investment and related incentive policies.
In the midst of COVID-19 pandemic, India is presented with an opportunity to attract FDI inflows into the country especially from large companies which seek to diversify their investments into new geographies and mitigate risks. Also, ramping up production across product lines will help serve big markets in the US, EU, China and elsewhere. The proposal aims to take advantage of these opportunities from the global economic situation to make India among the largest players in the global value chain, according to a PIB release.
In order to provide support and facilitation to investors for investing in India and to boost growth in key sectors of the economy, an Empowered Group of Secretaries (EGoS) is approved with the following composition: Cabinet Secretary (Chairperson); CEO, NitiAayog (Member); Secretary, Department for Promotion of Industry and Internal Trade (Member Convenor); Secretary, Department of Commerce (Member); Secretary, Department of Revenue (Member); Secretary, Department of Economic Affairs (Member); Secretary of Department concerned (to be co-opted).
Objectives of EGoS: To bring synergies and ensure timely clearances from different departments and Ministries; To attract increased investments into India and provide investment support and facilitation to global investors; To facilitate investments of top investors in a targeted manner and to usher policy stability & consistency in the overall investment environment; To evaluate investments put forward by the departments on the basis of their (i) project creation (ii) actual investments that come. Further, these departments would be given targets for completion of various stages by the Empowered Group.
A ‘Project Development Cell’ (PDC) is also approved for the development of investible projects in coordination between the Central Government and State Governments thereby grow the pipeline of investible projects in India and in turn increase FDI inflows.