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| Govt sets up non-profit company to attract FDI |
| BS Reporter / New Delhi Sep 11, 2009, 01:01 IST |
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Foreign funds inflow up 56% in July
The government today approved the formation of a non-profit company, Invest India, in collaboration with industry body Federation of Indian Chambers of Commerce and Industry (Ficci) and state governments in order to promote foreign investment in the country even as foreign direct investment (FDI) to India increased by 56 per cent in July against the corresponding month last year.
The FDI inflows in July were at $3.51 billion, against $2.25 billion in the same month last fiscal. In June this year, the figure was at $2.58 billion.
“I expect the next five months to be more positive,” Commerce and Industry Minister Anand Sharma told reporters today.
| INVEST INDIA |
| * The body to be in collaboration with industry body Ficci and state governments |
| * It would act as the first reference point for any investor interested in India and would facilitate setting up business within the country |
| * To be an advisory body and to have sector-wise consultants who will coordinate with state governments on feasible measures |
| * To conduct capacity-building exercises at state levels to create an investor-friendly environment |
| * To be a permanent executive set-up |
However, the total FDI inflows during the April-July period contracted by about 15 per cent to $10.53 billion over the same quarter of 2008-09, due to poor accruals in the opening months of the current fiscal. In the first four months of 2008-09, the inflows were at $12.32 billion.
On Invest India, Sharma said it would act as the first reference point for any investor interested in India and would facilitate setting up business within the country.
“The government’s equity share will be 49 per cent which it will reduce in a span of time to 35 per cent by giving half per cent stake to state governments over a period of time. Ficci will have a 51 per cent stake,” Sharma added.
The company would be an advisory body and would have sector-wise consultants who will coordinate with state governments on feasible measures. It will conduct capacity-building exercises at state levels to create an investor-friendly environment. The minister cleared that the functions of this company would not coincide with the functions of the Foreign Investment Promotion Board. “The company will basically try to bridge the information gap and will help foreign investors,” said Ficci Secretary General Amit Mitra.
It would be a permanent executive set-up and the major beneficiaries will be small and medium investors who are interested in investing in India, said an official with the Department of Industrial Policy and Promotion (DIPP). The management will constitute six members each from DIPP and Ficci.
“This will provide multiple benefits such as technology transfer, market access and will give insight into new organisational skills,” said A Sakthivel, president, Federation of Indian Export Organisations.
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