The government is planning a series of measures to attract foreign direct investment. These include setting up an investment facilitation fund, an overseas investment promotion office to help target potential investors and strike deals, and appointing an ombudsman.
The action plan being drawn up by the department of industrial policy and promotion seeks to revisit investment promotion policies. The Foreign Investment Promotion Council is proposed to be converted to a primary arm promoting foreign direct investment.
Its mandate will be to target specific corporations and extend incentives. The council will also have a presence abroad through promotion offices in select cities based on investment potential and experience.
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Sector wise targets are also being planned, in line with the N K Singh panel report on foreign direct investment. Although the department acknowledges that an investment promotion law, as proposed by the committee, will empower state-level investment promotion agencies, it does not favour a stand-alone foreign direct investment law.
The plan focuses on image building and enhancing the competitiveness of locations. It will be presented to Commerce and Industry Minister Arun Jaitley, who will fine-tune it before approaching other departments with it.
A foreign investment marketing and facilitation council, on the lines of export promotion councils, is also in the offing. The council will help in striking deals.
The proposed fund will assist state governments in preparing and marketing projects. An incentive-linked model will be adopted.
The Foreign Investment Implementation Authority, headed by the commerce and industry minister, is proposed to be strengthened. It will also act as an ombudsman, and set schedules for investment-related approvals by the Centre and states.
The department of industrial policy and promotion feels foreign direct investment is a national priority.
It is of the opinion that China has managed to attract more investment because of fiscal incentives and special treatment. India has adopted a short-term stance on the issue in contrast to Singapore, Malaysia and China, which have a long-term strategy, the department feels.
In the offing