Asserting that India would give better returns on investments than many other countries, finance minister Arun Jaitley on Sunday said foreign investments can provide great additional resources for infrastructure and other sectors.
He said the government is giving special focus on improving the ease of doing business in the country, with initiatives such as ‘Make In India’ designed to boost the manufacturing sector that has huge potential.
“India will give better returns than many other countries,” Jaitley said, while speaking to investors and business leaders. He said foreign investments can give great additional resources and the country's infrastructure sector needs huge investments.
“Railways, highways and power sectors are among those that require funds and the success of projects in these areas would largely depend on bankability,” Jaitley said.
Jaitley is in Hong Kong for two days, seeking to attract foreign investors, including large asset managers, to the Indian markets.
“Special focus is being given to improve ease of doing business. Investors have felt in the past the procedures have been difficult in India,” he said.
The Digital India and Make in India initiatives are designed to boost manufacturing and India has huge potential in these areas, he said.
Some states, Jaitley said, were not charging adequate tariff for electricity as a result of which the health of power distribution companies is being affected.
“These states cannot expect the PSU banks to fund the deficit of discoms,” said. Many discoms are grappling with acute financial stress.