After announcing FDI reforms, FM to leave for UAE to woo investors

Visit comes at a time when economy is not showing firm signs of revival

After announcing foreign direct investment (FDI) reforms, Finance Minister Arun Jaitley will leave on Sunday for the United Arab Emirates (UAE) to woo investors there.

“One of the main objectives is to meet and apprise UAE-based investors about opportunities in various sectors in India including infrastructure, manufacturing, services and the National Investment & Infrastructure Fund,” said an official statement.

The visit comes a few days after the government unleashed big-bang foreign investment reforms touching 15 sectors, including single brand retail, private sector banks, defence, media, plantation crops and manufacturing.

It is also at a time when the economy is not showing firm signs of revival. The latest data showed while industrial growth slowed to 3.6 per cent in September from 6.2 per cent in August, retail price inflation rose to five per cent in October from 4.6 per cent in September.

On Monday, the first day of his official visit, the finance minister will participate as the chief guest in UAE-India Economic Forum Meet in Dubai. Thereafter, he will call on his UAE counterpart Hamdan bin Rashid Al Maktoum.

New responsibility
The Centre has set up a governing council headed by Arun Jaitley to monitor activities of the National Investment and Infrastructure Fund (NIIF), which aims to boost infrastructure financing.

In July, the Cabinet had approved creation of a Rs 20,000-crore fund for these, including stalled projects. NIIF was first announced by Jaitley in his 2015-16 Budget.

Jaitley is chairman of the six-member governing council and economic affairs secretary Shaktikanta Das will be its secretary.

Financial services Secretary Anjuly Chib Duggal, State Bank of India chairperson Arundhati Bhattacharya, investment banker Hemendra Kothari and former Infosys Director T V Mohandas Pai are other members.  

The council’s mandate includes the approval of guidelines for investment of NIIF’s corpus and the parameters for the appointment and performance of investment managers and advisors.

NIIF has been registered under the provisions of the Indian Trusts Act, 1882 as a contributory and determinate investment trust.

According to the finance ministry statement, the creation of NIIF was approved with a view to maximising the economic impact through infrastructure development in commercially viable projects - both new and existing, including stalled ones.