Prime Minister launched the Voluntary Vehicle-Fleet Modernization Program (VVMP), also known as the Vehicle Scrapping Policy. The vehicle scrappage policy will bring in investments of around INR 10,000 crore (€1.2 billion) to set up 450-500 Automated Testing Stations (ATS) and 60-70 Registered Vehicle Scrapping Facilities (RVSF) across the country. A single window clearance portal is being developed where the applications for ATS and RVSF will be catered through a single portal within 60 days. A vehicle will be declared as End-of-Life or unfit if it fails the automated fitness test, the allowed retest and reinspection test if ordered by the appellate authorities.

The government has notified Production Linked Incentive (PLI) Scheme for automobile and auto components after approving it on September 15. The PLI Scheme aims to overcome the cost of disabilities and encourage the industry to make fresh investments to make advanced auto products. It is estimated that in five years, this PLI Scheme will lead to fresh investments of over Rs 42,500 crore (€8.5 billion), and incremental production of over Rs 2.3 lakh crore (€27 billion). It will create additional jobs of over 7.5 lakh jobs and enhance India's share in the global automotive trade

According to a recent report, India’s electric vehicle financing industry is projected to be worth Rs 3.7 lakh crore (€43.5 billion) in 2030, which would be about 80% of the current retail vehicle finance industry. The government is planning to set up an institution to fund businesses with a focus on electric vehicles as well as facilitate new financial instruments for lending to the public transportation and commercial vehicle segment, Union minister Nitin Gadkari said. Gadkari also said the government is planning to bring incentives for construction equipment vehicles to encourage them to become electric ones.

The Covid-19 pandemic and its damage to the Indian economy did not deter the discerning investors from lapping up opportunities in the electric vehicle and e-mobility sector. Many financial deals and the funds involved vindicate this fact. Collective investment done by e2W, e4W, EV component makers, electric commercial vehicles, and last-mile delivery companies was recorded at INR 25,045.31 crores (€2.9 billion) during January-July 2021. Electric commercial vehicles led the investments with a 32% share. Electric 4W saw an investment of 28% where M&M invested INR 3000 crore (€0.35 billion) making its contribution at 12%. It has already invested INR 1,700 crore (€0.2 billion) in India's EV business, with another INR 500 crore earmarked for a new research and development (R&D) centre

An ambitious incentive scheme worth up to Rs 12,000 crore (€1.4 billion) is in the works to encourage companies to set up data centres in the country. The govt. is targeting an investment of Rs 3 lakh crore in the next five years as part of the hyperscale data centre scheme and is planning to provide between 3% and 4% of capital investment as incentive to companies, along with real estate support and faster clearances. Vision is to “make India a global data centre hub” and termed the scheme’s target as the largest so far in terms of expected investment in the country over a period of just five years.

Telecom department's apex body the Digital Communications Commission (DCC) has cleared a provision of using satellite connectivity in telecom networks to provide services in remote areas where it is difficult to lay optical fibre network. Telecom Secretary said that the DCC (formerly the Telecom Commission) has also cleared the Request for Proposal for the rollout of BharatNet project for broadband services in villages in 16 states in public private partnership mode with viability gap funding of Rs 19,041 crore (€2.2 billon). "With a view of ease of doing business, the DCC has approved provision of cellular backhaul connectivity via satellite through VSAT for telecom services as per Trai recommendation. "This will help telecom companies in providing service in far flung areas where it is difficult to lay optical fibre," Prakash said.

• Production Linked Incentive scheme: For enhancing India’s Manufacturing capabilities and exports, an outlay of Rs 1.97 lakh crore (€23.2 billion) has been announced in Union Budget 2021-22 for production linked incentive scheme for 13 key sectors for 5 years starting from fiscal year 2021-22.

• Ease of doing business and compliance burden: Initiatives taken for compliance reduction are focused on simplifying and digitizing various processes, reduction in documents in documents to be submitted along with applications, reduction in frequency of inspections, etc. 

• Foreign Direct Investment (FDI): 100% FDI is permitted in manufacturing sector under automatic route.

• Public Procurement: To promote domestic investment and usage of made in India products by the government, the public procurement (Preference to Make in India) order has been revised on 16.09.2020

• Industrial Corridor: The National Corridor Program (NICP) has been conceived to promote world class manufacturing facilities and develop futuristic industrial cities in India.   

The parties have agreed to launch negotiations on key issues such as market access, investment protection and geographical indications. Talks with the EU on a free trade agreement are set to begin later this month after eight years with the commerce ministry scheduling a meeting among the stakeholders. Sources said the dates for the first few sessions with the EU representative have been set before the end of this month. The parties have agreed to launch negotiations on key issues such as market access, investment protection and geographical indications. The preliminary talks on the Broad-based Trade and Investment Agreement (BTIA) will be based on the initial recommendations of industry groups.