PM assures free flow of foreign investment

Prime Minister Manmohan Singh today asserted that the government will remove all hurdles to attract more foreign direct investment, including FDI from Germany.

The UPA government was committed to creating an environment conducive to larger private investment, both domestic and foreign, Singh said emphasising his government's mandate to carry forward reforms.

In a joint press interaction with visiting German Chancellor Gerhard Schroeder, Singh said, "In the months and years to come, we will work together with all like-minded countries and our partner in Germany to remove all the obstacles that come in the way of increased German investment and technology flows and in promoting a harmonious trading relationship."

Referring to his discussion with Schroeder, Singh said the two countries have agreed to set a target to double the bilateral trade in the next five years.

Schroeder's visit, he said, would lend added momentum to the growing strategic partnership between the two countries.

The German chancellor said he was personally committed to promoting this strategic partnership and that much more needed to be done to tap the existing vast economic potential.

Schroeder said he would do everything possible to promote trade with India and remove barriers that came in the way.

The prime minister, who held wide-ranging discussions with Schroeder, was asked about the prospects of India signing the non-proliferation treaty (NPT).

"We are a nuclear power. We are a responsible nuclear power. We act with restraint. We have 'no first use' doctrine in place. We have an impeccable record of export control so that any unauthorised use of sensitive nuclear materials can be effectively prevented," he said.

Observing that India was itself a "victim" of the gaps that exist in the present non-proliferation arrangements, he said, "I don't want to talk about it. We have seen, for example, the clandestine export of nuclear materials in our region."

India, he said, was interested in working with like-minded countries to strengthen the non-proliferation system.

Observing that Schroeder's visit underlined the mutual interest in building a strategic partnership between India and Germany, he said, "we have decided to continue meeting every year."

"As a key member of an expanding European Union and as a member of the G-8, we value our interaction with Germany," the prime minister said.

"India, like Germany, has the will and the capacity to take on the responsibility of a permanent member of the Security Council," he said.

Asked whether Germany was willing to support India's involvement in G-8, Schroeder said, "I will lend my support to any effort that devises a mechanism that makes it possible for India to have a closer relationship with G-8. That is part and parcel of our strategic partnership," he said.