The Reserve Bank of India (RBI) is considering setting up a panel to study the slowdown in foreign direct investment (FDI) in the country, a top bank official said today.
"The RBI is likely to set up a panel to study the issue and will come out with a report," RBI Deputy Governor, K C Chakrabarty, told reporters on the sidelines of an event here.
Chakrabarty added the report was to understand why FDI was slowing down and what should be done about it.
"If we know why it is slowing down then may be we will get some clue. If a research paper is available then the concerned people may take some corrective measures," he said.
The panel will be an internal RBI one, he said.
Chakrabarty's comments follow RBI Governor D Subbarao's comments who said that apex bank was working on plans to form a panel to study the slowdown in foreign direct investment.
Subbarao said that the panel would suggest ways to encourage FDI.
India received less FDI in 2010 than the previous year, courtesy a modest recovery in the global economy which reduced the risk and expansion appetite of corporates across the world.
Besides, the central bank also blamed procedural delays in allocation of land and environmental clearance among a range of domestic concerns affecting the FDI sentiment.
