Capitalising on the investor-friendly climate that the government has generated by the way of liberal economic policies, a joint venture of DIPP-ministry of commerce & industry, Ficci and state governments is making all efforts to hard sell India as a prospective FDI destination and encourage Indian MNCs to invest abroad. Department of Industrial Policy and Promotion (DIPP) is the nodal agency for framing FDI guidelines.
Talking to FE, VK Topa, managing director, Invest India, said, ?In a step to promote foreign investments during the 11th Five Year Plan, Invest India venture, that has been given a clearance by the Cabinet last September, is set up under Section 25 of the Companies Act, 1956.?
This is a non-profit company which is responsible for promoting foreign investments into the country in a more focused, comprehensive and structured manner. ?Invest India will be a joint venture between the government, Ficci and the state governments,? Topa said.
According to him, the venture is intended to assist foreign investors in identifying and realising investment opportunities in India. The company will also assist the government in its efforts towards projecting India as an attractive investment destination for foreign investors.
?Although the government has liberalised the economy and has made several efforts to streamline procedures for investors, there was no one-stop shop where answers would be available for the prospective investors. This company will act as the first reference point for any investor interested in India and will also facilitate in setting up business within the country, by making available sector-wise consultants and coordinating with the state government on feasible measures,? explained Topa.
It will conduct capacity building exercises at the state government level to create an investor-friendly environment. It will also undertake promotional work by expanding investor awareness beyond the metros. The company will assist DIPP and other ministries & departments in investment promotion projects/events and any other activity within the ambit of investment promotion, he pointed out.
Even as countries across the world compete fiercely to attract FDI, setting up an Investment Promotion Agency is a key part of their strategy to attract foreign Investors. There are more than 160 Investment Promotion Agencies at the national level & over 250 at the sub national level, world wide.
As far as equity is concerned the authorised capital of the company will be Rs 10 crore and the initial paid up capital Rs 1 crore. The financial implication of the proposal for DIPP is Rs 49 lakh only and will be met from the funds provided under the ongoing 11th Plan Scheme for Investment Promotion.
?To begin with Ficci will have 51% and the government will contribute 49% of the equity. Twenty eight states will put in 0.5% each,? Topa said.
?With secretary-DIPP as the chairman, Invest India will be the window to India, and will provide answers to all what the investors would want to know before investing here. In fact, ?Invest India?, would act as a first reference point to provide quality input on all aspects of doing business in India, guide investors on all policy and regulatory issues, undertake specific studies on relevant sectors and technologies for India, and provide handholding services to investors.?