India has most liberal FDI policy: Kamal Nath

Inviting American businesses to invest in India, Commerce Minister Kamal Nath today said foreign direct investment policies in the country were most liberal and attractive among the emerging economies.

Emphasising that India promised high returns on investment, Nath listed out the policy initiatives taken by the government in specific sectors such as telecom, ports, airports, railways, roads, energy and construction with a view to improving competitiveness of the Indian economy.

Further, lucrative investment opportunities were being offered to investors through tax incentives and customs duty concessions for import of plant and machinery needed for the projects.

A special economic zone (SEZ) Act was also in place to facilitate this process, he said. The minister also sought to dispel the impression that India was lagging behind in manufacturing.

"This is far from the truth. Of course, we are good in services & business process outsourcing, but that does not mean we lag behind in manufacturing skills. In sectors like auto-components, chemicals, apparels, pharmaceuticals and jewellery we can match the best in the world. More than a dozen Indian companies are among the top five global producers in their product categories," he said.

The minister is currently leading a high-powered business delegation to the US for the three-day focus event on India ending today.