Covid-19 crisis: Cabinet forms group of secys to attract foreign investment

The two bodies also aim to make Indian products go global, help develop investible pipelines

The Union Cabinet approved the setting up of two mechanisms in ministries and departments to attract companies looking to invest in India to diversify risks across regions after the coronavirus outbreak.

The two types of bodies — an empowered group of secretaries (EGoS) and project development cell (PDC) — will also look at ramping up production across product lines to help serve big markets in the US, EU, China and elsewhere. 

The proposal aims to take advantage of global opportunities to make India among the largest players in the value chain, Human Resource Development Minister Prakash Javdekar said after the Cabinet meeting.

“In the midst of current ongoing Covid-19 pandemic, India is presented with an opportunity to attract FDI inflows into the country, especially from large companies that seek to diversify their investments into new geographies and mitigate risks,” he said. 

EGoS will be chaired by the cabinet secretary with the NITI Aayog CEO, secretaries of departments of commerce, economic affairs, and revenue as members. The secretary of the Department of Promotion of Industry and Internal Trade will be member secretary. The secretary of the department concerned will be co-opted as a member. 

EGoS will bring synergies and ensure timely clearances from different departments and ministries, and will attract increased investments into India and provide support to global investors.

It will also facilitate investments in a targeted manner and will usher in policy stability and consistency in the overall investment environment, Javadekar said. It will evaluate investments put forward by departments on the basis of their project creation and actual investments that will come. 

Further, these departments will be given targets for completion of various stages. PDCs will be tasked with conceptualising, strategising, implementing, and disseminating details on investible projects.

An officer, not below the rank of joint secretary of each relevant central line ministry, will be in-charge of the PDC concerned. 

It will coordinate between the Centre and states concerned to grow the pipeline of investible projects in India and in turn increase FDI inflows. 

Positive impact on rural India: PM

The decisions on removing restrictions on the purchase and sale of crops have fulfilled a decades-old demand of the farmers, Prime Minister Narendra Modi said.

Tweeting in Hindi and English, he said these decisions will have a very positive impact on rural India, especially industrious farmers. “Long-pending agrarian reforms will enable the transformation of the sector,” he said.

Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, will pave the way for the creation of “One India, One Agriculture Market”. “There are provisions which increase usage of technology and enable effective dispute resolution mechanisms,” Modi said.