The government will further liberalise the foreign direct investment (FDI) policy in the coming weeks to attract higher overseas investments, Commerce and Industry Minister Anand Sharma said Wednesday.
“The government will continue its endeavour for liberalising the FDI Policy further in the coming weeks to ensure that India retains its leadership position for attracting foreign investments,” Sharma said in a statement.
Prime Minister Manmohan Singh government last year eased overseas investment norms for various sectors, including telecom, retail and civil aviation.
Sharma claimed the government policy had sent good signal to global investors, which resulted in substantial inflow of overseas funds in the last few months.
He was also optimistic about the Indian economy, saying there was a “visible rebound in industrial activity.”
“The Indian economy has inherent strengths which give it resilience from external pressures and the series of steps taken by the government both on the fiscal and current account front have yielded positive results,” he said.
The minister said in the coming months there will be a greater push for development of industrial corridors across the country and work will commence for establishment of the first few cities along the Delhi-Mumbai Industrial Corridor.
“I expect that with greater foreign investment and technology collaborations, Indian manufacturing will also move up the value chain and acquire greater competitiveness globally.”
On India’s foreign trade, Sharma said there were optimism about the scenario on the export front.
In spite of weak demand in traditional markets, exports had done reasonably well and in the first eight months of the current financial year, exports touched $204 billion, registering a growth of over 6 percent over the same period last year.
It was also reassuring that the trade deficit came down to $99.9 billion during this period as compared to $129 billion during the same period last year.
“I am sure that the in the remaining period of this financial year, exports will show a strong and dynamic growth,” Sharma said.