Union Minister asked automobile manufacturers to hike localisation of components to 100% or else the government will think of increasing basic customs duty on imported items, but the auto industry wants support for localisation of electronic parts, specially semiconductors. Speaking at an event organised by the Automotive Components Manufacturers Association of India (ACMA), Minister of Road Transport and Highways, said the present level of localisation of parts in the Indian auto sector is around 70% and "at any cost we need to stop imports of auto components".

The engineering R&D (ER&D) sector is one of the fastest growing industries in India. This E R&D policy has become first of a kind in the country. The aim of the policy is to contribute approximately 45% to India’s engineering R&D needs during the policy tenure. “Karnataka is currently the leading contributor to the Indian Engineering R&D industry revenue. The State is home to over 400 leading R&D Centers/ GCCs. This policy aims to retain this position, generation of intellectual properties (IPs), and to make this as skilled knowledge capital,”. It is to be noted here that the expenditure of global E R&D is forecast to clock $2 trillion by 2025, and the same industry is growing at an CAGR of around 12.5% in India.

India wants to start negotiations on an investment deal with the European Union simultaneously with a trade agreement in a renewed push to boost bilateral ties with the trade bloc. Keen to accelerate investments, technology and capital flows from the EU, India wants the investment and trade deals to happen parallelly and independently. “Both the investment deal and trade deal will have to happen parallelly and independently. The EU has said it is ready to consider launching negotiations on a standalone investment protection agreement, which would increase legal certainty for investors on both sides. 

The key sectors which attracted the maximum of these inflows include services segment, computer software and hardware, telecommunications, trading, construction, automobile, chemicals, and pharmaceuticals. FDI equity inflows into India crossed the USD 500 billion milestone during April 2000 to September 2020 period, firmly establishing the country's credentials as a safe and key investment destination in the world. According to the data of the Department for Promotion of Industry and Internal Trade (DPIIT), the inflows during the period stood at USD 500.12 billion. About 29% of the FDI came through the Mauritius route. It was followed by Singapore (21 %), the US, the Netherlands, Japan (each 7%), and UK (6 %).

India has implemented several measures to facilitate trade, such as simplification of procedures and customs clearances for imports and exports, according to WTO. Geneva-based World Trade Organisation said that the other trade-facilitation initiatives introduced by India since 2015 include introduction of Indian Customs Electronic Gateway (ICEGATE); Single Window Interface for Facilitation of Trade (SWIFT); the Direct Port Delivery and the Direct Port Entry facilities; and the increased use of the Risk Management System (RMS). These points were part of the report of India’s seventh Trade Policy Review (TPR), which began on January 6 at the World Trade Organization.

The Consumer Affairs, Food and Public Distribution Minister has called for embarking on Mission 'one nation one standard' and make India the leader in setting global benchmarks in setting standards. He said that lab testing in India should be of world standards and modern equipment and latest technologies should be used. BIS should explore international partnerships and associations to achieve synergy in the field. He said that "gap analysis" of BIS and government labs be taken up on a priority basis as well. In management parlance, gap analysis refers to the comparison of actual performance with potential or desired performance.

The BIS has shared the Indian Standards catalogue and guidelines for adoption of Indian Standards with National Standards Bodies (NSBs) of 21 countries with whom India has cooperation arrangements.  This is to create awareness on indigenous Indian Standards among developing and least developed countries and to encourage them to use these wherever suitable, the consumer affairs ministry has urged the external affairs ministry to disseminate information on free availability of indigenous Indian Standards in countries through Indian missions.

The DoT has directed to give preference to locally produced cybersecurity products in public procurement. “Preference has to be given to ‘Make in India’ cyber security products in public procurement by central ministries/departments, public sector undertakings (PSUs) and government organisations,” the DoT said in a circular issued. The development came after the Ministry of Electronics & Information Technology said that it was awash with complaints from droves of indigenous cyber product companies about the challenges, they were facing in participating in public procurement of such products.

With an eye on supporting domestic manufacturers, the government proposed an increase in customs duty on certain imported components used in automobiles. In the Budget 2021-22, the Finance Minister proposed an increase in customs duty of various parts including ignition wiring sets, safety glass and parts of signalling equipment to 15 % with effect from February. The government said the changes in basic customs duty is for creating a level-playing field for the benefit of micro, small and medium enterprises (MSMEs) and other domestic manufacturers.

The Union Commerce and Industry Ministry announced extension of the Foreign Trade Policy (FTP) of Government of India. The present Policy which came into force on 1st April 2015, was for 5 years and was extended thereafter upto 31st March, 2021. In view of the unprecedented situation arising out of the pandemic Novel COVID-19, which is persisting, the Government has decided to continue benefits under various export promotion schemes by extending existing Foreign Trade Policy by another six months i.e. up to 30th September, 2021 which will provide continuity in the policy regime. Similar extension is made in the related procedures, by extending validity of HandBook of Procedures.