Have to create confidence to attract investments in India: PM
New Delhi: India will have to create confidence among foreign investors that there are no barriers for them to invest in the country, Prime Minister Manmohan Singh Wednesday said.
"To attract foreign capital, we will have to create confidence at the international level that there are no barriers to investment in India," Singh said in his Independence Day address.
His statement comes against the backdrop of certain sections of foreign investors expressing concerns over the government moves such as retrospective amendments to the Income-Tax laws and the General Anti-Avoidance Rules (GAAR).
The Prime Minister's Office (PMO) has already set up an expert committee for making suggestions on draft guidelines and framing a roadmap for the implementation of GAAR. The committee would submit its report by September 30.
"We will leave no stone unturned to encourage investment into our country so that our entrepreneurs can make a substantial contribution to our economy," Singh said.
He also said that ambitious targets have been fixed in roads, airports, railways, electricity generation and coal production.
The Government will take steps to increase investment for infrastructure development with the help of the private sector, he added.
Foreign direct investment (FDI) in the country declined by over 65 per cent to USD 4.64 billion during the April-June quarter of the 2012-13 fiscal, as against USD 13.4 billion in same period last year.
The government has also been making efforts to liberalise norms to attract FDI in various sectors, including multi-brand retail. It has already raised the limit of foreign holding in single-brand retail to 100 percent.
The government has received six proposals, including that of Tommy Hilfiger, Promod and Damiani for single-brand retailing in the country.