Maran lists steps to boost FDI

NEW DELHI, OCT 14: The industry and commerce minister Murasoli Maran has hinted that the list of industries where automatic permission is...

NEW DELHI, OCT 14: The industry and commerce minister Murasoli Maran has hinted that the list of industries where automatic permission is given by the government to set up units may have to be enlarged in order to attract more foreign direct investment in the country.

Alternatively, consideration would have to be given to draw up a negative list of industries, which would not be open to foreign investors, said Maran while speaking to a group of reporters immediately after assuming office.

"Our estimate is that India can absorb FDI to the extent of 10 per cent of the GDP annually," he said adding that this point had been emphasised in the NDA manifesto. Maran, who had been able to bring the high-powered Foreign Investment Promotion Board (FIPB) functioning in the Prime Minister’s Office under his charge during his brief stint as industry minister in the UF government in 1997, raised doubts whether it should be part of his ministry.

"The FIPB has become automatic since its inception in 1991-92.It meetsevery Saturday to dispose of FDI cases and its functions should therefore be carried out by somebody," he felt. Earlier in his interaction with senior officials in the industry and commerce ministries, Maran felt that steps would have to be taken to attract more FDI, which, he noted had not been growing as expected.

Pointing out that political stability was a major factor that influenced the FDI inflow, the minister said that he did not believe that events across the Indian border would have any effect on the investment climate in India.

"We have now a stable government, but conditions will have to be created in India whereby foreign companies can to India to invest in a larger measure," he said.

Maran said that India’s interests would have to be protected during the negotiations at the ministerial conference under the WTO auspices in Seattle in November. "We have to diversify our products and markets and reverse sluggish trend in the country’s export growth noticed in recent months and also change theexport profile," he stated. India was in a position to export even defence items, he said and wanted e-commerce to be promoted. He said that increasing exports would be his foremost priority.