Finance minister P Chidambaram is heading to Japan for three days, after his visits to Hong Kong, Singapore besides several countries in Europe, to sell India as the top investment destination at a time when the country’s current account deficit has hit an alarming 6.7% for the third quarter.
The minister, with senior officials of the ministry including economic affairs secretary Arvind Mayaram and chief economic advisor Raghuram Rajan in tow, is slated to meet his Japanese counterpart, and other investors.
Chidambaram is expected to outline measures to kick start the investment cycle, which would boost the industry and services sectors — critical for reviving growth and job creation.
“The government would go ahead with the reform process while taking all other steps to ensure that investments start trickling in and the finance minister’s effort would be to invite investors,” a senior finance ministry official, who did not wish to be identified, said. Investments have been slow in the last few months, while the infrastructure sector alone requires $1 trillion during the 12th plan (2012-17).
Chidambaram would also highlight the steps that his government has already taken to boost growth.
Earlier, Rajan had underlined the need to increase of foreign and domestic investment to help in financing the yawning current account deficit besides improving the environment to boost exports.