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`Govt mulling steps to attract FDI'

Our Bureau

NEW DELHI, March 24

THE Government on Thursday said that it is looking at several steps that will boost foreign investment in various sectors. The initiatives envisaged include removal of existing sectoral caps with the ultimate aim of treating foreign and domestic investor s at par.

This was stated by the Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Mr. Ajit Kumar, here on Thursday while addressing a round table on `Trade and investment' jointly organised by Associated Chambers of Comm erce and Industry of India (Assocham) and Federation of Indian Chambers of Commerce and Industry of India (FICCI).

While admitting that bureaucratic problems were hampering the flow of foreign direct investment (FDI) into the country, Mr. Kumar called on industry organisations to play a more proactive role. ``You have to demand, politeness does not work,'' Mr. Kumar said.

He pointed out that a project which will be cleared within a a short period in countries like Malaysia may drag on for several years for clearance to be granted.

Turning his attention to the flow of FDI into the country, Mr. Kumar said that in the past nine years, while more than $ 59 billions worth of FDI approval had been given, only about $ 18 billions had actually flowed in. ``Even from the US, while the amou nt approved by the Government has been $ 13 billions in the past nine years, only about $ 2.34 billions has flowed in,'' he said.

The Secretary said that several State Governments were now getting their act together to attract foreign investment. ``The Gujarat Chief Minister is to shortly leave for the US and Canada with a large delegation to attract investment. Besides, we have he ld discussions with the Madhya Pradesh state government to identify projects which will attract investors,'' Mr. Kumar said.

Meanwhile, to carry forward the momentum provided to Indo-US relations with the visit of the US President, Mr. Bill Clinton, the US-India Business Council and Joint Business Council is organising a five-day tour of US in June. Officials said that the del egation for the tour will be drawn from captains of Indian industry.