Govt should respond to calls for relaxing FDI, says Montek

Written by fe Bureau | New Delhi | Updated: Jul 11 2012, 07:57am hrs
Planning Commission Deputy chairman Montek Singh Ahluwalia on Tuesday said the government should be responsive to calls for relaxations in the FDI policy, including in single brand retail where Swedish furniture major Ikea and the government are reportedly coming closer to a mutually acceptable solution to their dispute.

When asked whether the government should relax the mandatory local sourcing norm for FDI beyond 51% in single brand retail, Ahluwalia said: We should have a dynamic approach in policy making.

On the infrastructure sector, he said that the Planning Commission was finalising its review of major projects, following which the Prime Minister Manmohan Singh would assesss the sector's performance. Recently, Ahluwalia said that quarterly performance targets would be set for energy and infrastructure sectors where delayed clearances, red tape and litigation have been hampering project implementation, and hence, investments. We will be sending our review to the PMO by July 20, he said, while releasing a report Scenarios : Shaping India's future.