To attract investments into the country, the Union Cabinet has given its approval for setting up of an “Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) in Central government ministries or departments.
Accordingly, the new mechanism will reinforce India’s vision of becoming a $5 trillion economy by 2024-25.
“Government is determined to put in place an investment-friendly eco-system that strongly supports the domestic investor as well as FDI and will boost the economy manifold,” the Centre said in an official communique.
As per the communique, in the midst of ongoing 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 to serve big markets in the US, EU, China and elsewhere,” the communique said.
“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.”
In terms of the mechanism, an EGoS has been approved to provide support and facilitation to investors for investing in India and to boost growth in key sectors of the economy.
Similarly, a Project Development Cell (PDC) is also approved for the development of investible projects, in coordination between the Central and state governments, and in turn, increase the FDI inflows.