Laos woos Indian investment with 100% FDI
India's trade with Laos has witnessed over 100 per cent growth since last year to reach $6 million this year.india Updated: Nov 17, 2006 01:57 IST
In a bid to woo Indian investment, Laos on Thursday said it will allow upto 100 per cent Foreign Direct Investment (FDI) for setting up base in that country.
"We hope Indian companies will avail of the Laos government's progressive policies that welcome foreign investment in key sectors," Laos Foreign Affairs Vice-Minister HE Phongsavath Boupha said in New Delhi.
India's trade with Laos has witnessed over 100 per cent growth since last year to reach $6 million this year. It has on offer a market of almost $250 million for Indian investors to tap, a CII release said.
Laos is aiming for 7.5 to 8 per cent growth in the near future for which it requires a substantial amount of foreign investment.
Laos Planning Department Director General Khamliane Pholsena said, "Indian entrepreneurs could invest in power sector, mining, food processing and sugar and rice mills, wood and timber industry, pharmaceuticals, light engineering sector, IT, agro-processing and tourism."
Boupha said the country is expecting around 70 per cent of the investment requirement in Laos to come from the private sector.
The Government of India has extended a credit of $2 million to Laos and an additional soft loan of $5 million for upgrading irrigation and management systems.
Among the various Indian companies who have business interest in Laos are Kirloskar Brothers and Aditya Birla Group.