With the firm belief that only loads of foreign capital could drive economic growth, India on Monday assured top CEOs of simplifying investment procedures, even as it portrayed infrastructure hiccups like bad roads and ports as an opportunity for wealth creation.
"We are in the midst of a major overhaul (of investment procedures). . . proposals are under consideration of competent authorities. . . we would shortly make major announcements in this regard," Department of Industrial Policy and Promotion secretary Ajay Dua told CEOs at the India Economic Summit 2005 in New Delhi.
He said the government was looking at redefining control on FDI flowing into the country. Wherever investments are already being vetted by Sebi, IRDA and other regulators, it might do away with procedures that require investments to go through the process again under FIPB.
Later Dua told reporters that the government was only revisiting procedures and not tweaking FDI caps in various sectors.
The DIPP secretary, who reeled out statistics on policy framework that sought to place India on a pedestal vis-à-vis its Asian neighbours China, Malaysia and Thailand, however, admitted that the country was crippled by the lack of physical infrastructure.
"You may ask if things are so hunky-dory, why doesn't money pour in into the country? I would say, they are good but the major constraint is lack of physical infrastructure," Dua said.
"Its ports -- air and sea -- are bad and so is energy. . . but these constraints are also an opportunity for investment," he said.
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