Govt plans panel to iron out FDI, merger issues

To improve the investment climate in the country, the government is looking at forming a core group to address broader issues pertaining to foreign direct investment, mergers and acquisitions and a host of other matters, reports Mahua Venkatesh.

To improve the investment climate in the country, the government is looking at forming a core group to address broader issues pertaining to foreign direct investment, mergers and acquisitions and a host of other matters.

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The group would have representatives of the government and industry.

“Certain issues need to be addressed and solved on a fast track basis and these issues need to be clearly identified,” a senior government official said.

Recently, steel billionaire LN Mittal slammed the government for not being able handle mega investment deals. Mittal said that neither the states nor the centre were equipped to handle growth in steel sector.

Though India has emerged as a hot investment destination for many global majors, several issues continue to plague the economy.

The official source also said that there should be more co-ordination between the states and the centre to support growth and boost investments.

The economy has started showing signs of recovery which has been primarily boosted by the stimulus packages but critical issues pertaining to investment need to be sorted out in order to have a more sustainable growth.

Apart from this, several reform measures, including increasing the FDI limit to 49 per cent in the insurance sector from the current 26 per cent, and the critical pension bill are still pending.