Investment Promotion Agency May Be Closed

The government is planning to close down the 35-year-old Indian Investment Centre (IIC), owing to budgetary constraints and the view that its relevance has diminished.

The centre, which used to be the first port of call for investors interested in India, has been without a full-fledged head for almost three years.

The move to close down the centre has been criticised in various circles on the ground that it would go against the UF governments promises.

The centre also serves as a single-window agency for all matters relating to NRI investment, including the processing, forwarding and follow-up of NRIs applications., IIC has also been helping Indians businessmen in forming joint ventures and setting up wholly-owned subsidiaries abroad.

 

Officials say IICs closure will not help much, especially when most emerging economic powers are strengthening their investment-promotion agencies. A note being circulated in government circles says the centre can serve as the secretariat to FIPB and FIPC.