The government will introduce a Bill on special economic zones (SEZs) before the end of the year. This would include bio-technology parks, free trade and warehousing zones (FTWZs), Commerce and Industry Minister Kamal Nath said today. |
"We see SEZs as hubs of manufacturing and FTWZs as trading hubs. In all these, FDI up to 100 per cent would be permitted, including in real estate development and establishment of the SEZs," Nath said, while inaugurating the OECD-India Investment Roundtable. |
Stating that India's investment policies, including policies on foreign direct investment (FDI), were among the most liberal in developing economies, Nath pointed out that there were no restrictions on FDI in most sectors. |
"What we really want is FDI that generates the maximum economic activity and thereby creates employment, that creates wealth for ordinary people. We especially look to FDI in manufacturing sectors and in greenfield projects," he said. |
He said economic reforms have unleashed productive capacities and it would be taken forward. "Reforms enjoy broad political consensus and the government is committed to reduce transaction costs and do away with archaic rules and procedures," he said. |
He said the comfortable foreign exchange reserves, the sixth largest in the world, had provided a "cushion" to embark on bold economic reforms. |
India, along with Russia and China, will shape the global economy of the future. Despite many positives in the country's economy, concerns over infrastructure and poverty still persist, he said, adding that India needed $150 billion over the next five years to improve infrastructure. |
Nath said overseas investments by Indian companies had exceeded $3 billion in the last two years, with nearly 60 per cent in the manufacturing sector. |
He informed that the telecom sector in India was amongst the fastest growing in the world today, with the number of mobile phones increasing at over 50,000 each day. |
"While the software prowess of Indian manpower has come into sharp focus, our manufacturing skills, particularly in high precision, high-tech sectors have not received adequate attention from foreign investors," Nath said, adding most of the top vehicle manufacturers and their suppliers were sourcing high-quality automobile components from India. |