India can attract up to $90 billion in foreign direct investment over the next five years, says a report drafted by a group of non-resident Indians.
However, to achieve the target the country will have to position itself as a better alternative to China.
India also needs to signal a change in its attitude towards FDI through a high-impact reforms package.
Titled "India - FDI", the report also points out that the government should target companies like Posco, Arcelor, Severstal, Mittal, Walmart, Metro, Cargil, Shell, BP, Intel, Nokia, Intel and Samsung to help raise the level of investment in the economy.
No major new reforms will be required, but implementation of reforms already proposed was important as was using global and regional benchmarks to ensure competitive positioning, the report said.
It added that consistency at all levels of the government and stability of reforms were a must in order to make the process a success.
The NRIs had been asked to prepare a roadmap for attracting FDI by Prime Minister Manmohan Singh when he had visited the US last year.
They include Victor Menzes, Indira Nooyi, Anant Dorairaj, Vineet Khosla, Arshad Zakaria, PC Chatterjee and Arun Maira.
The group has suggested that the country needs a credible brand ambassador to promote FDI, one who can address boards of Fortune 500 companies.
Alongside, there should be 4-5 sector chairs, who are specialists in their fields.
A permanent office in New York or London and roadshows in the US, Europe, Singapore, Japan and Taiwan will be required in order to ensure that India can compete with countries like China and even Singapore, which consciously market themselves abroad, the NRIs have suggested.
In this context, the investment commission, dominated by generalists, was not adequate in its present form, some members of the group are reported to have said.
Specific recommendations have been made to attract FDI to sectors like airports, power, telecom, health care, manufacturing, retail, agri-business, financial services, media, software and knowledge services.
A presentation was made to representatives of the core ministries on Wednesday and another will be made to the prime minister on Thursday.
It has also suggested appointing relationship managers, of secretary level, for each project of more than $ 100 million and that the Foreign Investment Promotion Board's investment regulation orientation will have to be replaced by a proactive investment promotion board with competitive orientation.
FDI should be allowed to target domestic and export markets.
On Special Economic Zones, the group has said that these zones be converted into sector-specific, special economic regions that will provide a level playing field to the domestic industry as well.
These areas should have a zone administrator empowered to give single-point clearances, and rapid local access to legal recourse should be provided.
The NRIs have recommended taking up of a limited number of such zones, 5-10 in the first instance, and ensure that they are well connected by air, road and rail besides being offered other incentives.
They have identified knowledge-based, manufacturing-based and process-based SEZs, with Hyderabad and Bangalore identified as potential locations for the first, Visakapatnam, Pune, Chennai and Haryana for the second and Hyderabad and the west Coast for the third lot of SEZs.
