(a) whether India was listed as an underperforming country in the UNCTAD investment climate report;
(b) if so, the details thereof;
(c) the response of the Government in this regard; and
(d) the steps being taken to increase investments in the country?
MINISTER OF THE STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JYOTIRADITYA M. SCINDIA)
(a) & (b): India is projected to become the second most attractive destination for FDI in 2010-12,
as per UNCTAD’s World Investment Report, 2010. The projection made in the report is based on the
survey conducted among Trans National Corporations (TNCs).
(c) & (d): Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%,
is permitted on the automatic route, in most sectors/activities. This policy is reviewed, on an ongoing
basis, through a consultative process and significant changes have been made in the policy regime, in
recent times, to ensure that India remains increasingly attractive and investor-friendly. The FDI policy
is now available in the form of a consolidated document, as Circular 2 of 2010, effective 1 October, 2010,
issued by Department of Industrial Policy and Promotion. The circular is available in the public domain and
can be accessed at the website of the Department of Industrial Policy & Promotion (http://dipp.nic.in).
The Government plays an active role in investment promotion, through dissemination of information
on the investment climate and opportunities in India and by advising prospective investors about
investment policies and procedures and opportunities. A number of joint commissions and joint
working groups have been set up to promote industrial, technical and scientific cooperation
with select countries. The Government has also set up CEOs’ /Business Leaders’ Fora with some
countries, for active business-to-business cooperation and for developing a road map for partnership
and industrial cooperation. It also coordinates with apex industry associations in their activities
relating to promotion of industrial cooperation, intended to stimulate flow of foreign direct investment
into India.