Continuation of the Scheme for Investment Promotion (SIP)
Continuation of the Scheme for Investment Promotion (SIP)
F. No. P-36017/256/2020-Investment Promotion.—The Central Government has approved for continuation of the Scheme for Investment Promotion (SIP), a Central Sector scheme, for the duration of five years (i.e., FY 2021-22 to 2025-26) with a financial outlay of INR 970 crores. The scheme comprises a number of components and activities for promotion of investment into the country; enhancing international co-operation for promoting FDI & capacity building.
Investment promotion is a multi-faceted strategic activity that pursues bringing investment opportunities to the existing & potential investors. It also accentuates the influx of capital, jobs, skills, technology, and increases productivity and innovation for a country. To garner these benefits, investment promotion requires continuous efforts to be channelized around the main activities such as Foreign Direct Investment reforms, Ease of Doing Business reforms, Investment facilitation and Targeted outreach amongst other activities.
Department for Promotion of Industry & Internal Trade (DPIIT) under the Ministry of Commerce & Industry has been entrusted with the task of attracting domestic and foreign investments in the country. To increase the investment inflow, the department has been undertaking various initiatives and reforms such as the launching of Make in India, supporting champion sectors and subsectors, setting up of an Empowered Group of Secretaries and Project Development Cells, creating a GIS based Industrial Information System and National Investment Clearance Cell amongst others. These activities are being supported under the “Scheme for Investment Promotion” launched vide OM No. I l(I)/2004-IP&IC-IV dated November 11th, 2008. The last implementation period of the scheme was from the FY 2017-18 to 2019-20.
As India aspires to be a USD 5 trillion economy by the Year 2025, schemes such as SIP hold a special significance in boosting the investment climate of the economy. The vision of the scheme enables creating an atmosphere in the country that would lead to both increased domestic and foreign direct investments.It will also enable the country to craft the ‘Brand India’ effectively. Apart from this, the scheme will empower the promotional events held domestically & abroad making sustained efforts towards overcoming procedural challenges in bringing investments. The scheme will also enable the department in providing hand-holding support to domestic and foreign business investors through focused workshops and training programs.
To sustain and take the momentum forward, it is important to continue with the activities under “Scheme for Investment Promotion” in a more focused and targeted manner thereby promoting Make in India and AatmaNirbhar Bharat. Given this, continuation of the “Scheme for Investment Promotion” from FY 2021-22 to 2025-26 has been approved with the following components:
(i) Investor targeting & facilitation – Domestic & International activities
(ii) Investment promotion – Amplification & outreach activities
(iii) Project management activities
(iv) Foreign Travel
- Investor targeting & facilitation – Domestic & International activities
The provision of high-quality services to support investors throughout the investment life cycle is extremely important. Various services, such as, location analysis and identification, regulatory advisory, support regarding project approvals and clearances at Central and State level, amongst others, are provided to the new and prospective investors.
Other activities proposed under investor facilitation are –
i. Focused investor targeting & country sector outreach
ii. Organizing CEO Forums and Joint Commission meetings
iii. Financial Investors Initiatives for attracting institutional investors
iv. Support to Indian missions abroad for Market Entry Support Programme (MESP) under Make in India initiative
v. Project Monitoring via PMG Invest India Cell
vi. Investment Clearance Cell (National Single Window System)
vii. Supporting Industrial Clusters (via Industrial Information System /Industrial Park Rating System)
viii. Investment Facilitation for North-East India
ix. Monitoring of FDI activities via FDI Monitoring Cell
x. Monitoring and developing a pipeline of investible projects via Empowered Group of Secretaries and Project Development Cells
xi. Regional ecosystem development via One District One Product
xii. Supporting domestic investors via Domestic Investor Cell
xiii. Listing of investible projects via India Investment Grid - Investment promotion – Amplification & outreach activities
To sustain and enhance the momentum towards making India the preferred investment destination and promoting “Brand India”, an inclusive approach is being followed to involve all the stakeholders involved in the investment facilitation process for international and domestic engagements. The objective of outreach activities is to position New India as a preferred investment destination for global investors.
Other sub-activities on the promotion front are –
i. Executing branding and communication strategies for amplification & outreach
ii. Support to Indian Missions abroad for investment promotion activities and Make in India initiative
iii. Support to State Governments in their investment promotion activities
iv. Support to industry associations for investment promotion activities
The guidelines for “Organization of business and investment promotion events” are available at www.dpiit.gov.in. - Project management activities
To enable effective management of the scheme, it is proposed to provide project management support along with the concurrent evaluation of the scheme. This will include capacity building by preparing industry/sectoral reports and preparation of concept papers for the innovative projects to attract investments. The intent here is to share the insights with the investors and showcase India’s strength as an investment destination simultaneously. Support will also be provided by a Project Monitoring Cell in monitoring the progress of various tasks from time to time.
Other sub-activities under project monitoring are –
i. Undertaking in-depth research and analysis of the investment promotion ecosystem by Strategic
Investment Research Unit
ii. Capacity building of the State Investment Promotion Agencies
iii. Monitoring of the Make in India action plans by Project Monitoring Cell
iv. Monitoring the progress of facilitation activities, promotional initiatives and other activities across sectors, states and countries via digital platform. - Foreign Travel
To engage with the investors, undertake investment promotion and outreach activities, and understand their concerns about investing in India, it is proposed that Government officials may be deputed as official delegations abroad as per requirements.
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