Thursday, April 04, 2013 08:00 IST
The government is reviewing the India's foreign direct investment (FDI) policy comprehensively to see what more can be done. In his address at the Confederation of Indian Industries' (CII) annual general meeting (AGM), prime minister Manmohan Singh urged India to welcome foreign investors.
“The liberalisation of FDI in multi-brand retail and other areas are important. We have given clear signals that we welcome foreign investment, which has a critical role in bringing in modern technology and globalising our economy,” he said.
Laying emphasis on increasing the investment climate in the country, Singh said setting up the Cabinet Committee on Investment (CCI) would give investment in various sectors the much-needed fillip, and assured that the CCI would take speedy decisions.
"CCI was designed to fast-track regulatory clearances for industry and infrastructure and to resolve ministerial differences. In the last three months the progress was encouraging,” the prime minister said.
Singh said other reform measures are also being contemplated. The financial sector legislative reforms committee has made a number of recommendations which would be carefully considered. The Cabinet has cleared the Land Acquisition and Rehabilitation Bill, which will soon go to Parliament.
He observed that the prime mover of the Indian economy was the private sector, accounting for 75 per cent of the investment. He said, “The private sector needs an environment in which enterprises can flourish and create both jobs and growth,” and added,“The environment today is not what it should be, and that is what the government should correct.”
Conceding that part of the problem is due to the global slowdown, the prime minister asserted that India’s growth figures are impressive than countries like Brazil, Russia, Japan and South Africa.
Singh highlighted the steps taken by the government for the restoration of macro-economic balance as a step towards higher growth. Applying a tight leash on fiscal deficit, rationalising fuel subsidies, containing the current account deficit, moderating inflation, etc. are some steps that are being contemplated by the government.
“We have financed a current account deficit of over $90 billion in 2012-13 without loss in reserves. We will take all steps to ensure that inflows remain strong for the next two years. I believe a well-managed Indian economy seen to be back on a high growth path can attract continuing capital flows of this order,” he added.
“The liberalisation of FDI in multi-brand retail and other areas are important. We have given clear signals that we welcome foreign investment, which has a critical role in bringing in modern technology and globalising our economy,” he said.
Laying emphasis on increasing the investment climate in the country, Singh said setting up the Cabinet Committee on Investment (CCI) would give investment in various sectors the much-needed fillip, and assured that the CCI would take speedy decisions.
"CCI was designed to fast-track regulatory clearances for industry and infrastructure and to resolve ministerial differences. In the last three months the progress was encouraging,” the prime minister said.
Singh said other reform measures are also being contemplated. The financial sector legislative reforms committee has made a number of recommendations which would be carefully considered. The Cabinet has cleared the Land Acquisition and Rehabilitation Bill, which will soon go to Parliament.
He observed that the prime mover of the Indian economy was the private sector, accounting for 75 per cent of the investment. He said, “The private sector needs an environment in which enterprises can flourish and create both jobs and growth,” and added,“The environment today is not what it should be, and that is what the government should correct.”
Conceding that part of the problem is due to the global slowdown, the prime minister asserted that India’s growth figures are impressive than countries like Brazil, Russia, Japan and South Africa.
Singh highlighted the steps taken by the government for the restoration of macro-economic balance as a step towards higher growth. Applying a tight leash on fiscal deficit, rationalising fuel subsidies, containing the current account deficit, moderating inflation, etc. are some steps that are being contemplated by the government.
“We have financed a current account deficit of over $90 billion in 2012-13 without loss in reserves. We will take all steps to ensure that inflows remain strong for the next two years. I believe a well-managed Indian economy seen to be back on a high growth path can attract continuing capital flows of this order,” he added.
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