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Automatic approval list for FDI to be enlarged: Bakht

Industry Minister Sikander Bakht today announced that the automatic approval list for foreign direct investment would be enlarged shortly, besides allowing foreign equity in real estate.

This is part of the government's future agenda for further reforms, Bakht said while inaugurating the European Union-India 1999 partnership conference in New Delhi.

''We also intend to simplify the procedure for opening of liaison and branch offices in India by foreign companies,'' Bakht said, adding that further review of simplification of exchange controls would be undertaken through the FEMA.

The government, he said, is also considering foreign investment in newer areas such as real estate and insurance. ''We are also continuing our efforts to simplify and consolidate industrial legislation and we are strengthening our mechanisms for investment after-care.''

On the setting up of Foreign Investment Implementation Authority announced in the Union Budget 1999-2000, the minister said it would aim to reduce irritants and problems in the process of implementation of approved projects.

Riding on the several initiatives taken by the government, he said, investor confidence has continued to increase with cumulative foreign direct investment approvals since 1991 crossing $ 53 billion and total inflows up to December 1998 being over $ 15 billion. Sectors that have attracted the bulk of investment include power, telecom, oil refinery, services and transport.

The minister also called for increasing cooperation between the small and medium enterprises of India and the EU member nations.

He also allayed fears that the swadeshi policy of the Bharatiya Janata Party-led government was anti-economic reform. ''Instead, the present government has given a renewed thrust to economic reforms and this vindicates our commitment to the process of liberalisation,'' he said.

Speaking on the occasion, Ajit Kumar, secretary, industrial policy and promotion, invited increased investments from European Union nations stating that India has the capacity to absorb $ ten billion worth of FDI per annum.

UNI

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