Pranab for further easing of foreign investment regime

The government today said it would work towards further relaxing the foreign investment regime and address regulatory issues to facilitate flow of overseas funds into the country.

"We must work towards attracting more foreign investment as our economy progressively integrate with the rest of the world. For this, an attempt must be made to eliminate the regulatory gaps and overlaps ... With regard to these investments," Finance Minister Pranab Mukherjee said while addressing a function to mark the platinum jubilee of the Reserve Bank of India (RBI) here.

"India is one of the most preferred investment destinations in the world," he said, adding foreign funds can come into the country as Foreign Direct Investment (FDI), portfolio investments, venture capital funds and external commercial borrowings (ECBs).

FDI inflows jumped 15.4 per cent to $1.72 billion in February compared to that in the same month last year.

Foreign investments, he further said, needed to be encouraged to ensure that the country remains on the path of high growth rate. "India today is among the third or fourth fastest growing economies in the world", he added.

India is expected to recorded an economic growth of 7.2 per cent during 2009-10, up from 6.7 per cent during the previous fiscal. As per the projections of the Planning Commission, the economy is likely to expand by 8.5 per cent during the current fiscal and 9 per cent the next year.