Govt steps up efforts to attract FDI | business | Hindustan Times
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Govt steps up efforts to attract FDI

business Updated: Aug 16, 2009 13:48 IST

Concerned 46 per cent decline in foreign investment during January-May 2009, the government has stepped up its activities to attract FDI in sectors like textiles, roads and other other infrastructure.

Transport Minister Kamal Nath had said all impediments would be removed to get foreign investment in the roads and highways sector.

He added that the roads sector is expected to attract USD 10 billion of FDI in the next two years.

The government is also making efforts to bring in foreign investment in the textiles sector, the largest employer after agriculture in the country.

Textiles Minister Dayanidhi Maran had led a business delegation to Japan last month to woo foreign investors in the labour intensive sector.

FDI inflow in January-May period of 2009 was USD 10.58 billion compared to USD 19.56 billion in the same period previous year, a dip of 46 per cent.

The government also proposes to raise the FDI cap in private insurance firms from 26 to 49 per cent and a bill to give effect to the proposal is pending in the Rajya Sabha.

CRISIL Principal economist D K Joshi said by taking the steps government is building pipeline to attract FDI.

He said when the global appetite for investment is low due to slowdown, infrastructure sector has the capability to attract investment.