Assure investors on stable policy, Sharma urges envoys

India's economic diplomacy was the focus on the second day of a conclave of Indian heads of mission here, with Commerce and Industry Minister Anand Sharma saying there was need to reassure investors there would not be policy reversals.

Addressing a gathering of 120 Indian envoys Tuesday, Sharma emphasised that despite the slowdown in growth and the predictions made by the International Monetary Fund (IMF), the Indian economy would not go down below five percent growth.

Sharma said in the past 13 years, foreign direct investment (FDI) totalling $297 billion had come to India. Since 2009 till March 2013, the FDI inflow was $162 billion. This year, the government expected FDI flows to be better than last year.

He indicated Indian ambassadors need to reassure investors there would not be policy reversals. India is a rule-based economy. Exports are likely to do very well if the trend that has been discerned so far continues.

He said India still continues to be the highest recipient of remittances. There is enough inflow of foreign capital into the Indian economy. Capital fundamentals of the Indian economy are strong and all necessary legal mechanisms are in place to protect investor interests.

He outlined the initiatives being undertaken for skill development in India for assimilation of high-end technology and the initiatives with various countries, including Germany and Japan.

The agenda for the confabulations of Indian envoys Tuesday was focused on India's economic engagement with the world. There were roundtables with the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) and on opportunities in Africa.

There was also discussion about forthcoming World Trade Organisation Ministerial Meeting to be held in Bali and the complex negotiations likely to take place.