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Government finalises strategy to accelerate FDI

The government on Thursday announced a six-point strategy with emphasis on implementation and closer interaction with foreign investors and Indian embassies abroad, as part of efforts to sustain the present momentum of foreign direct investments in the country.

With a view to facilitating the implementation of projects approved by the Foreign Investment Promotion Board, the Commerce and Industry Minister Murasoli Maran had a series of internal discussions and reviews to give a final shape to the strategy, an official release said.

During the period January-April 2000 the total amount of FDI approved was $25.8 billion while the actual FDI inflows were $13.1 billion, it said, adding that even though the realisation rate had been 'consistently and substantially increasing' since 1992 the strategy would help sustain the momentum and even accelerate it.

"The key element of the new strategy is closer and more sustained interaction with investors on one hand and the relevant agencies of the government and institutions on the other to bring a sharper focus on implementation and supplement the policy changes which have already taken place," the release said.

Under the strategy, the secretariat for Industrial Assistance will function as the secretariat for Foreign Investment Implementation Authority for contacting all foreign investors who have obtained FIBP approvals to ascertain the progress of the implementation.

The SIA will take up problems of investors with the appropriate ministry or agency and if required bring it before the Fast Track Committee or FIIA, it added.

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