Government sets up ‘Invest India’ JV to attract FDI

The government on Wednesday set up a new entity ‘Invest India’ tasked with the mandate of facilitating and promoting foreign investment in India.

The government on Wednesday set up a new entity ‘Invest India’ tasked with the mandate of facilitating and promoting foreign investment in India. The not-for-profit company is a joint venture between the Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI) and the state governments.

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“We need to take our growth to double-digit levels and ensure that the benefits of growth percolate to the people. This he, said would require huge quantums of investment,” said Anand Sharma, Commerce and Industry minister while announcing the launch of the entity.

Initially, FICCI will hold 51 per cent share in the company, DIPP ( Department of Industrial Policy and Promotion) will have 49 per cent share to begin with. DIPP’s share will be reduced overtime to 35 per cent of paid up capital with induction of fresh equity by the 28 state governments, with each one holding a share of 0.5 per cent equity.

“The company will act as the first reference point for any investor interested in India and will also facilitate in setting up business within the country, by making available sector wise consultants and coordinating with the state government on feasible measures,” a statement said.

“ ‘Invest India’, was the vehicle to guide investments into the country as overseas investors had seen that even in difficult times, during the post-meltdown period, the Indian economy had performed encouragingly,” Sharma said.