India still preferred destination for FDI: Economic Survey
04 Jul 2009
The pre-budget Economic Survey tabled in Parliament on Thursday was optimistic about investment opportunities in India, saying that the country has been able to retain its position as a preferred investment destination despite the global economic downturn.
"Foreign Direct Investment (FDI) flows in 2008-09 were a reflection of the confidence of foreign investors in the growth prospects of the Indian economy...India continues to retain its position as a preferred destination for investments," the Economic Survey said.
India has attracted $2.34 billion in foreign investments in April, the first month of current financial year, a rise of 19.3 per cent over the previous month.
The commerce ministry, had in February revised the FDI regulations with a view to make the policy more liberal and user-friendly, allowing up to 100 per cent FDI under automatic route in many sectors. (See: Government details revised FDI regulations)
The Economic Survey also called for FDI in multi-format retail, starting with food retail. ''
Initially, this could be subject to setting up a modern logistics system, perhaps jointly with other organised retailers. A condition could also be put that it must have (for 5 years say) wholesale outlets where small unorganized retailers can also purchase items (to facilitate transition)," says the survey.
