Government directs ministries to aggressively pursue overseas companies for investment after recent reforms.
New Delhi: The government has requested all Central ministries to take advantage of many reforms executed in the last couple of months to lure overseas companies for large-scale investment in the country. The Cabinet Secretariat letter reviewed by Firstpost shows that concerned departments are advised to identify sectors where foreign firms could be invited for new investments.
The notice said new reforms are of crucial importance in stimulating growth and employment in supporting fresh investments and also an increased inflow of money into capital markets.
“All ministries must quickly identify sectors for possible investment and initiate outreach efforts to draw Indian companies and foreign firms in recognized countries to invest in those identified businesses,” the Cabinet Secretariat stated.
The government has suggested 100 percent Foreign Direct Investment (FDI) under the automatic route for sale of coal and coal mining tasks including the associated processing infrastructure. The data that was made available by the government in July this year observed that total FDI inflow in various businesses for FY 2018-19 increased to $64.38 billion in $60.97 billion in 2017-18.
According to the records, the removal of this 30-year cap for leasing property from Special Economic Zones (SEZs) and also the new logistics policy employed by the government will smooth certain challenges for foreign companies especially from the leading five countries (US, Germany, Japan, UAE and France) making substantial investments in India. India is currently focussing on electronics production, renewable energy, pharmaceuticals, food processing, auto, retail trading, metallurgical businesses, resorts, tourism, construction and the service industry including banking, insurance, outsourcing, research and development, and engineering testing.
Between April-June 2019 total FDI equity inflow in the country had been Rs 1.13 lakh crore which is expected to spike from the last quarter of the fiscal year in the background of many measures announced by the government. The FDI inflow was greatest through Mauritius followed by Singapore, Japan, US, Germany, France, Netherlands, Cyprus, UAE and UK. The analysis of data of April-June reveals increase in computer applications providers, construction, trading and the automobile sector.
Among the states, Maharashtra, Delhi, Uttar Pradesh, Karnataka, Tamil Nadu and Gujarat witnessed a huge increase in foreign investment. Power industry aren’t stuck in red tape and the Cabinet Secretariat has asked for comprehensive reviews of MoUs signed by India to ensure that various actions envisaged under railways and executed in a timely way.
Pushing for expeditious execution on the ground, Cabinet Secretary Rajiv Gauba told Central departments to review all decisions. Decisions taken till 31 from the NDA-2 government’s status was analyzed in the Cabinet meeting. It was also determined in a meeting chaired that ministries will present the status of implementation of Cabinet decisions before the Council of Ministers.
“Delays in implementation of decisions is a matter of concern. This exercise may inter alia examine the factors for slippages out of adherence to time-lines that are authorized. Concrete strategies/action plans may be prescribed with clearly identifiable time-lines and landmarks for various actions to ensure effective implementation,” the Cabinet Secretary wrote. Government directs ministries to aggressively pursue overseas companies for investment.