The government on Tuesday said that it had not abandoned divestment and assured overseas investors that there were many opportunities for them to participate in the privatisation process.

"It would be incorrect for you to assume that our government has abandoned privatisation. We have not. Rather, we believe that the process of divestment should be based on sound business and economic sense. You should rest assured that there will be a host of privatisation opportunities for you," Commerce and Industry Minister Kamal Nath said in his keynote address to the US-India Business Council's annual meeting being held in Washington.

The Divestment Development: Complete Coverage

In his video-conference address, the minister said the privatisation process, like the government's economic policies, would have a human face.

The government is committed to raising the level of spending on education and health so that the Indian population will be healthier and better educated, he said in his address to the Council.

The minister welcomed the launching of the US-India Trade Development Partnership and said that the business-led initiative will deepen and widen the scope, scale and quality of the two-way commerce between the US and India.

"It is significant," he said, "that India is the fastest growing trade partner of the United States."

Kamal Nath pointed to India's huge and expanding markets, talented work force and stable and democratic society.

One of the most challenging tasks before the new government, Kamal Nath said is to transform the lives of the people and to rapidly improve the country's infrastructure, and in this task, "we would like to see your involvement."

The commerce minister however, termed the attempts in the US to restrict business process outsourcing as "unfortunate". "It is ironic that countries which used to be in the forefront of free, open and liberal trade are even now passing laws to hinder BPO," Kamal Nath said.

Outsourcing, he stressed, is in fact a win-win situation for both India and the US and it will be irrational to block it.

The minister said the government was particularly keen to attract foreign direct investment in manufacturing and greenfield projects to generate more economic activity and employment.

"I would like to point out that while all kinds of FDI are welcome, our very comfortable foreign exchange reserves means that investment for mere acquisitions does not excite us," the minister said. Kamal Nath pointed out that in recent years Indian firms had bought breweries and drug units in the US.

Pointing out that the small-scale sector in India provides the largest employment opportunities for the Indian population, next only to agriculture, the minister said he would like to see more small and medium US enterprises come to India.

He assured his audience that his ministry was open to suggestions from business and industry even as he praised the role of the Indian American community which, by its hard work and enterprise, has risen to being one of the wealthiest minorities in the United States.

Among others who sought to calm the nerves of American business community were Rakesh Sood, Charge d'Affaires of the Indian Embassy, V S Seshadri, Minister (Commerce) at Indian Embassy, Federation of Indian Chambers of Commerce and Industry secretary-general Amit Mitra and Confederation of Indian Industry director Tarun Das.

Additional inputs: PTI