|
Shri Kamal Nath, Union Minister of Commerce & Industry, has invited foreign direct investment (FDI) from UK in manufacturing sector and in Greenfield projects in India, stating that “we especially look to FDI in manufacturing sectors and in Greenfield projects” at a Destination India Seminar organised by the Federation of Indian Chambers of Commerce & Industry (FICCI) in London last evening. He said that while all kinds of FDI was always welcome, investment for mere acquisitions “does not excite us. What we really want is FDI that generates the maximum economic activity, and thereby creates employment, that creates wealth for ordinary people”, he said.
Shri Kamal Nath indicated that a bill would be introduced soon in Parliament on Special Economic Zones (SEZs), which would also include Bio-Technology Parks and Free Trade Warehousing Zones. In all these, FDI upto 100% would be permitted, including in the real estate development and establishment of the zones. “We see SEZs as hubs of manufacturing, and Free Trade & Warehousing Zones as trading hubs. These zones will be specially designated areas, for all economic purposes foreign territory, and, therefore, units located in them will enjoy a number of tax preferences. These, and the state-of-the-art infrastructure, should make them particularly attractive places to set up business in”, the Minister said.
Referring to the recent World Economic Forum Global Competitiveness Report which ranks India at third place in the availability of scientists and engineers, Shri Kamal Nath said that over the next two decades, India will become one of the largest economies in the world and would continue to be among the most dynamic. “Establishing a strong presence in India is a strategic necessity for British Corporations”, he said.
On outsourcing, the Minister said that several authoritative studies have shown that “outsourcing is in fact a win-win situation. India benefits no doubt, but so do British companies; and the additional profitability of the companies sustains and creates more jobs in the UK. We should seek out more innovative areas for outsourcing and benefiting from the comparative advantage and complementarities of our economies. We are looking to boost pharmaceuticals and clinical research. The medical expertise and para-medical skills available in India make it an ideal place for this kind of activity”. He said India’s Patent Law is currently fully TRIPs- compliant adding that “we shall provide for product patent protection with effect from 1st January of next year as per our obligations”.
|
