The Union Minister for Commerce & Industry Anand Sharma has asserted that India remains one of the top destinations for Foreign Direct Investment, despite the economic slowdown. Sharma said India’s current economic growth is not commensurate with its potential and the country has capacity to grow faster. He said that India is looking to create as many as 100 million skilled jobs in the manufacturing sector by raising its share of GDP to 25% from 16%.
Speaking at a Students’ Interactive Session at Sophia College in Mumbai today, Sharma said India’s Foreign Direct Investment policy has been progressively liberalized to make the regime more investor friendly. He said in a recent review of the policy the government has amended the sectoral caps in some key areas to stimulate FDI inflow. Between 2009-13, India attracted FDI worth US $ 172.82 billion, despite growing competition from emerging economies like Brazil, Indonesia, Vietnam etc.
Sharma admitted that red tape continued to be a cause of concern, but added that sincere efforts were being made to create a conducive business environment. He noted that two of the key organizations crucial for clearance of projects – Ministry of Environment & Forests and Central Board of Customs & Excise are yet to come on board, but expressed confidence that he would convince them to join in soon.