Need panel to encourage investments, says NK Singh

Janata Dal (United) member NK Singh on Tuesday recommended the setting up of an investment commission to encourage investments in the country. He was speaking on the Finance Bill-2012 in Rajya Sabha.

Janata Dal (United) member NK Singh on Tuesday recommended the setting up of an investment commission to encourage investments in the country. He was speaking on the Finance Bill-2012 in Rajya Sabha.

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"I would suggest the constitution of an investment commission, comprising domain experts, to actively hold dialogues with the investor community, allay their worst fears, and encourage tangible investments," Singh said.

He also suggested a "bipartisan committee" of Parliamentarians to allay investor fears that policies may change each time a government steps down.

Voicing concerns on subdued investor sentiments, Singh said, "Successive downgrading of credit rating by rating agencies such as Standard & Poor will continue to raise the cost of borrowing, deepen investor skepticism and give negative signals to the investor community."

Singh also pointed to the decline of the long-term saving rate from 36% in 2007 to 31% in 2011, the burgeoning fiscal deficit, and poor performance of the manufacturing sector.