Spread word about reforms around the world, govt tells envoys

Two days after opening up aviation and multi-brand retail sectors for foreign capital flow, the government on Sunday asked New Delhi’s envoys to other countries to tom-tom around the world the efforts being made to make India a favourable destination for investment.

Commerce Minister Anand Sharma told the Indian high commissioners and ambassadors around the world that the recent changes in the government’s policies were intended to make India “a favourable destination for much-needed foreign investment”.

Sharma was addressing the top diplomats in the annual conference of the Heads of Missions organised by the Ministry of External Affairs.

His comments came at a time when several constituents and allies of the ruling United Progressive Alliance joined the opposition Bharatiya Janata Party and the leftists in the chorus against the government’s decision to allow 51 per cent foreign direct investment (FDI) in the multi-brand retail sector and 49 per cent in airlines.

The BJP, its allies and the leftist parties accused the government of buckling under “foreign pressure” and opening up the door for FDI in multi-brand retail, putting at risk survival of small-time local traders.

The Congress-led government, however, claimed that the move was intended to bring in foreign investment and would create jobs and help farmers by creating post-harvest infrastructure. The Congress’ allies like the Trinamool Congress, Samajwadi Party and Bahujan Samaj Party too opposed the move.

The India Inc however welcomed the move as it saw in it the much-awaited end of the UPA government’s “policy paralyses”, which prompted international rating agencies to downgrade India as an investment destination.  

The US has since long been pushing India to open up key sectors for foreign investment. American president Barack Obama in an interview to Press Trust of India last July pointed out that US business community found it “too hard” to invest in India due to prohibitions
and restrictions on foreign investment in “too many sectors”.

Sharma stressed on the need for India to embrace the globe through “trade and investment linkages” that are mutually beneficial. He told the diplomats that economic engagement had become integral to bilateral and regional relations.

He also spoke about the National Manufacturing Policy that aims at creating nearly 100 million new jobs and establish over a dozen world class manufacturing zones. He stated that the policy was an investment being made in the future of the country with the goal of increasing the share of the manufacturing sector in the GDP to levels comparable to that of other emerging economies.