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| Govt to compile FDI rules into a compendium |
| Press Trust of India / New Delhi Nov 19, 2009, 19:41 IST |
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In a move to help foreign investors understand the Indian FDI rules, the government will put together about 175 of its 'press notes' into an user- friendly compendium.
"We have close to about 175 press notes circulating... The Industry Ministry has taken a decision to put all of these together in a booklet so that the FDI rules become much simpler for a foreign investor," Minister of State for Commerce and Industry Jyotiraditya Scindia said here.
Currently, all the FDI-related norms are dispersed through press notes issued since 1991. India received $120.3 billion foreign inflows in the last 18 years.
The UNCTAD 'World Investment Prospects Survey 2009-2011 has ranked India as the third preferred destination for foreign direct investment (FDI).
However, Director of economic think-tank ICRIER Rajiv Kumar said the step is not adequate.
"...The Department (of Industrial Policy and Promotion) should also do away with the rules which were not being used by investors... The essential provisions of these notes should be codified in a single provision. Then it will help the FDI climate," Kumar said.
During April-August 2009-10, FDI in India declined to $13 billion from $14.64 billion in the same period last year due to the global credit squeeze.
On the issue of rice imports, Scindia said the government is in talks with Thailand and some other Asian countries. The government is planning to import rice to meet the shortfall in Kharif crops.
"Yes, we are in conversation with Thailand and some other countries in Asia," he said on the margins of 25th World Apparel Convention.
On the issue of banning cotton exports on account of rising prices in the domestic market, he said, "...Interest of farmers are (very) important...This matter (banning exports) is under due consideration."
Meanwhile, Textiles Minister Dayanidhi Maran who was also present at the convention said that there is a need to attract FDI to further boost the growth of the sector and to create employment.
"Our textile industry had been able to attract only $200 million in 2008. In comparison, the Chinese textile industry has been able to attract foreign investment of $10 billion," Maran said.
The textile sector, which is the second largest employer after agriculture in the country, was hit hard by the global economic downturn and the resultant demand slump.
The domestic textiles and apparel market is currently valued at $40 billion.
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