News: Panel to give NRI funds a push

(TT 08/01/2007) New Delhi - To encourage greater investment from the diaspora, the government is planning a single-window investment promotion council.

“The overseas Indian investment promotion council will undertake investment promotional activity, which entails making extensive contacts with potential investors, lobbying and interacting with individual companies to ensure a smooth investment environment for the overseas Indian,” said commerce minister Kamal Nath.

The minister added that it would be necessary to undertake one-to-one dialogue with individual NRI investors at the boardroom level to motivate them to invest in specific industries and sectors.

Stating that enhanced foreign investment is possible only by providing a hassle-free investment route for NRIs, the minister added that “target-oriented efforts are necessary to contact individual companies or investors to persuade them to invest in India”.

He also advocated the need to have an all-inclusive growth in the country. “For India to emerge as a globalised economy, it is necessary to provide a huge boost to agriculture and manufacturing sectors.”

He said the share of the manufacturing sector, which contributes 23 per cent to the country’s GDP, should be increased to 25 per cent. “This would have an imminent effect on employment generation. For every job created in the manufacturing sector, at least three get created in the services sector.”

On the issue of further changes in foreign direct investment (FDI) norms, the minister said the government has already approved sweeping reforms in FDI in various important sectors, such as telecom and retail, to facilitate growth.

FDI in telecom has been raised to 74 per cent from 49 per cent, and 51 per cent FDI is allowed in single-brand products in the retail sector.