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A day after the US President, Mr Barack Obama, called for a new wave of reforms in India to pave the way for higher FDI flows, a senior Minister said that “policy making is a sovereign decision.”
While noting that Mr Obama had every right to his perceptions, the Commerce and Industry Minister, Mr Anand Sharma, told reporters that the country’s FDI policy was investor-friendly and India continues to be an attractive investment destination.
Mr Sharma was reacting to Mr Obama’s reported remarks that India was “too hard to invest” as it had “too many sectors, such as retail, India limits or prohibits the foreign (direct) investment”.
He said being the world’s largest economy, the US should instead demonstrate leadership against protectionism as well as in encouraging capital flows and trade in the world.
The Minister also said that the US should “be leading the fight in the world against protectionism, and taking forward the stalled Doha Development Round of the World Trade Organisation (WTO) to a meaningful conclusion, so that a rule-based and balanced multilateral trade regime is put in place.”
On FDI policy, he said the Government had an abiding commitment to reforms, and added it had followed a “calibrated approach” on opening up sectors.
Mr Sharma said policy decisions were “taken after an inclusive process of consultations which my Government believes in and, accordingly at an appropriate time decisions which serve the supreme national interest are made.”
He said the UPA Government had taken note of Mr Obama’s observation, but added that, “There is always a difference between perception and reality… because India remains one of the most attractive destinations for foreign investors.”
“Last year, India received FDI of over $50 billion, 34-35 per cent higher than the previous years. So, why this perception, I fail to understand… When it comes to taking more decisions, the Prime Minister (Dr Manmohan Singh) has said, (and) I am (also) saying, we are committed to continue following our roadmap of economic reforms and economic growth.”
On questions regarding allowing FDI in multi-brand retail and civil aviation, he said the Government was in serious discussions with all stakeholders. However, he said some State Governments were still reluctant to allow FDI in multi-brand retail.
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