Buoyed by the multi-billion investments announced by global firms such as IKEA and Coca Cola in India, Commerce and Industry Minister Anand Sharma on Wednesday hit back at critics saying the government has 'not lost direction'.
"We welcome another $5 billion investment by Coca Cola and Euro1.5 billion by IKEA is coming in. It is good news and things are moving.
"It's not that we have lost our direction. We have not," Sharma said.
Sharma was speaking to reporters after Coca Cola Co chairman and CEO Muhtar Kent met him at his office.
Bullish on India, Kent said, increasing investments here was a good description about Coca Cola's views about India.
"We are very pleased that the support we are getting from all sides of the Indian government," he said, adding during his meeting with Sharma he had apprised him of the company's plans in India.
On Tuesday, Kent had announced that Coca Cola would invest $5 billion between now and 2020 on various activities, including setting up of new bottling plants.
Last week, home furnishing major IKEA approached the government with a proposal to invest 1.5 billion euros to set up 25 stores in the country.
Sharma further said the government is working to provide investor-friendly
"We are working in that direction. As far as the government is concerned, we have made it very clear that we believe in an environment, which is welcoming and supportive for investors. We have taken a number of steps and have come out with policy initiatives," he said.
Citing the example of allowing 100 per cent FDI in single-brand retail, he said, it has been received well.
"There are three investment applications, which have already come and more are in the pipeline," Sharma added, without disclosing details.
The government has come under attack from various quarters, including rating agencies and a section of the corporate sector, for failing to carry out policy reforms, decline in foreign investments and overall economic slowdown.
The country's foreign direct investment declined by 41 per cent to $1.85 billion in April compared to the same period in the previous fiscal.
Ratings agency Standard & Poor's had earlier this month threatened to downgrade India's credit rating to 'speculative grade' saying there were political roadblocks to reforms which could put the country at risk of losing its investment grade rating.
Similarly, Fitch had also lowered India's credit rating outlook to negative, citing corruption, inadequate reforms, high inflation and slow growth.
