Investment
in India - Foreign Investment Promotion Council - Constitution &
Functions
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Constitution
The Government has constituted a Foreign Investment Promotion
Council (FIPC) under the chairmanship of Chairman ICICI, to
undertake vigorous investment promotion and marketing activities.
The Presidents of the three apex business associations such as
ASSOCHAM, CII and FICCI will be members of the Council. A Ministry
of Industry personnel will be Member-Secretary.
Boost to FDI
Setting up of the Council follows the Governments's decision to
strengthen the institutional mechanism relating to the consideration
and approval of Foreign Direct Investment (FDI) proposals. The
Common Minimum Programme (CMP) which states that the nation needs
and has the capacity to absorb at least US $ 10 billion a year as
FDI will require considerable promotional efforts apart from
facilitating foreign investment approvals.
Support to FIPB
The strategy adopted is a two-pronged one with one relating to the
approvals and clearance required as per the transparent guidelines
and other relating to full time investment promotion and marketing.
Accordingly a revamped Foreign Investment
Promotion Board (FIPB) with fresh guidelines was put under the
direct control of the Industry Minister thereby reducing one level
in the decision making. As a secondary and supporting measure a
Foreign Investment Promotion Council was conceived.
Functions
The Foreign Investment Promotion Council will undertake the
investment promotional activity which entails making extensive
contact with potential investors, lobbying and interacting with
individual companies etc. The Council with distinguished and well
known experts as the members will capitalise, manage and coordinate
investment promotion and marketing efforts.
Promotional works
The promotional efforts have been mostly centred on addressing
general investment promotion seminars and conferences. Besides that
a more target-oriented approach is now required, both to identify
the sectors/projects within the country requiring foreign direct
investment and targetting the specific regions and countries of the
world from which FDI would be brought in through special efforts.
What more to be done
It will be necessary to analyse the requirements of various sectors
and industries in India which are in need of modernisation,
technology upgradation and capital requirement. Sectoral profiles
and projects proposals for these industries will need to be prepared
for presentation to the selected international companies and foreign
investors.
Getting foreign investors
It will also be necessary to undertake one-to-one dialogue with
individual foreign investors at the Board-room level in order to
motivate them to invest in the specified industries and sectors. It
is felt that the Government has to identify specific
regions/countries where surplus capital is available for investment
overseas. Target-oriented efforts will be necessary to contact
individual companies in those countries for persuading them to
invest in India.
The revamping of FIPB as well as constitution of FIPC have been
done with these objectives in view and in accordance with the
commitment in the Common Minimum Progamme. |
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