Investment climate looks good: PM

India's investment climate has improved and the economic outlook for the near future is positive, despite constraints due to high oil prices and gaps in infrastructure, Prime Minister Manmohan Singh said today.

Encouraged by the buoyancy in the economy, the PM has asked commerce and industry ministry and others to prepare a policy proposal for the consideration of the Cabinet using inputs from the Investment Commission and National Manufacturing Competitiveness Council (NMCC) reports.

At a meeting of the Prime Minister's Council on trade and industry today, Singh also said these reports be sent to the chief minister's of all states to get feedback from them.

He also asked the Indian industry to take a more serious look at investment and trade opportunities in South Asia, South East Asia, West Asia and Central Asia.

"I am aware of the concerns expressed by some of our businesses in this regard. Our government will be sensitive to genuine concerns," the PM said.

Research and development need greater attention to improve the competitiveness of the Indian industry. Cabinet colleagues need to focus on employment generation and pay special attention to issues like displacement of rural folk in areas where large industrial units are being set up, the PM said.