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Prime Minister Manmohan Singh said on Monday that Indian states are vying with each other to attract more foreign direct investment, with the improvement in the investment climate and the reduction in bureaucratic and ideological hurdles.
He was speaking to the media at the East Asian Summit in Kuala Lumpur.
To this end, he cited the example of West Bengal and its progressive chief minister, Buddhadeb Bhattacharya. He said that even though West Bengal is ruled by a Leftist government, the state chief minister is pulling out all stops to bring in big investment to the state.
"Nobody would say that the Communists are very good at inviting foreign direct investment. But the West Bengal government is going out of its way to create world class facilities in the state to attract FDI."
When asked what would be his advice to a new person coming to do business in India, the prime minister said, "An act of investment in the final analysis is an act of faith in the future of a country. Have faith in our country."
He accepted that even though red tape and certain other impediments still exist, the investment climate is much friendlier now that ever before.
Speaking on the occasion, Manmohan Singh said that the Congress-led United Progressive Alliance government plans to take steps to raise India's economic growth to 9-10 per cent.
"In the first half of 2005-06, we have touched 8.1 per cent. It is our ambition to raise it to 9-10 per cent in the next 2-3 years," the prime minister said.
India's GDP grew at 8 per cent growth in first quarter and 8.1 per cent in second quarter of the current financial year following good monsoon, high growth in industry and services sectors and robust corporate results.
The finance ministry and The Reserve Bank of India expect the economy to grow by 7-7.5 per cent this fiscal.
The prime minister said: "Things are moving." "Old mindsets do exist, but we are succeeding despite hurdles. We are a functioning democracy. We have had changes in the government 4-5 times since the beginning of reform process in 1991. But no government has sought to revise reform direction."
"We are working on liberalisation of economy, getting the government out of business and getting rid of corruption," he added.