No comprehensive review of FDI norms: Sharma

Assuming charge as the commerce and industry minister today, Anand Sharma ruled out any “comprehensive” review of the new Foreign Direct Investment (FDI) norms but assured more help to the exporters who are adversely impacted by the global economic slowdown.

The Department of Economic Affairs and the Reserve Bank of India (RBI) had recently raised objections on the implications of the new FDI norms mandated by Press Notes 2, 3 and 4 stating that this could lead to breach of sectoral limits for foreign investors in certain restricted sectors like telecom and retail.

“These (the press notes) are well considered decisions. I do not see any reason why a comprehensive review is required,” Sharma said in his first interaction with the media after assuming charge this noon.

On the issue of opening restricted sectors like retail, Sharma maintained that the government will continue to deliberate on the pros and cons of the proposal. “These sectors require wider consultation within the Cabinet,” he added.

Sharma, a Rajya Sabha member from Shimla, assumes charge at a time when Indian exports are going through one of its worst phases, with six months of continued contraction. Indian exports in 2008-09 stood at $168 billion, registering a growth of just 3.4 per cent.

“We shall be talking to the chambers of industry and trade bodies and look at possibilities for more incentives. I will be discussing with the finance minister what more measures can be taken in the budget,” Sharma added.

He also assured that measures to boost exports will be released in the Foreign Trade Policy, which is scheduled to be released in August 2009. “These will include measures to reduce transaction costs,” Sharma said.

Another issue that Sharma will have to deal with is opposition of certain aspects related to SEZs by key allies like Trinamool Congress.

Stating that SEZs have generated higher employment and investments, he said, “SEZ policy, so far, has taken care to protect their (referring to the common man) interests and see that employment have been generated. We will be talking within the ruling coalition not only on this but also other policy initiatives which we see are important within the current context.”