Ease FDI norms to boost investor confidence: CII to Govt

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SME Times News Bureau | 18 Jul, 2012
The government should announce confidence building reforms such as allowing FDI in multi-brand retail to address concerns expressed by US President Barack Obama on India's investment climate, industry body CII said on Tuesday.

CII notes the concerns raised by the US President on India’s investment climate.

Speaking on the same, President, CII and Chairman, The Godrej Group, Adi Godrej, said, "We strongly feels that it is time to announce a few confidence building reform measures such as announcing increasing FDI caps in civil aviation, defence production and opening of FDI for multi brand retail. These will go a long way in correcting the perception about India globally."

These steps would go a long way in improving perception about India globally, he said.

There has been a demand to raise FDI cap from 26 percent to 49 percent in the defence production.

Earlier, Obama in an interview to an Indian news agency , had noted that it is still too hard to invest in India. He had suggested more economic reforms, particularly in the retail sector to enable foreign direct investment (FDI) and entry to American companies.

CII aslo said that the global investors' perception on India has been affected due to the recent developments in Indian policy making.

"With the introduction of GAAR, which was intended to plug taxation loopholes, and the announcement on retrospective amendments to income tax law had affected business sentiments and investors' confidence globally," Godrej said in a statement.