Alignment Of FDI Definition With IMF Soon

New Delhi, November 26: | Updated: Nov 27 2002, 05:30am hrs
The government will soon redefine foreign direct investment (FDI) in accordance with the parameters of the International Monetary Fund (IMF), said department of industry policy & promotion (DIPP) secretary V Govindarajan here on Tuesday.

He was speaking to mediapersons on the sidelines of the CII-WEF session on exports and FDI. An official group, headed by Mr Govindarajan and comprising representatives from the DIPP and the Reserve Bank of India, submitted its report about 10 days back. The report intended to redefine FDI as per the IMF parameters. The exercise will be completed within three months, he said.

Speaking earlier at the session, which was moderated by Dr Sanjaya Baru, Editor, The Financial Express, DIPP secretary said the current FDI definition in India just includes cash flow, ignoring inflows by way of equipment and technology. So, the complete picture on FDI does not come out, he said.

Referring to a report by International Finance Corporation (IFC), Mr Govindarajan said that Indias FDI regime is one of the most liberal in the world. He buttressed his assertion by adding that in the first half of this calender year the country has attracted 60 per cent more foreign direct investment as compared in the same period last year. This is particularly credible since there is reported to be a decline of 27 per cent in global FDI this year, he added.