FDI push: 150 foreign companies have been identified as potential investors

The Indian Government, after its successful ‘Make in India’ pitch, is now looking forward to boosting Foreign Direct Investment (FDI) in the country.

The Department of Industrial Policy and Promotion (DIPP) with Invest India has shortlisted 150 companies as potential investors is meeting top management teams individually as it seeks to ensure that FDI inflows rise for the fourth straight year.

A team under Ramesh Abhishek, DIPP secretary, recently met Fiat Chrysler COO Alfredo Altavilla in Italy to talk about the company’s concerns. Similarly, talks were initiated with Italian chocolatier Ferrero SpA. The company has decided to set up a plant in China to cater to demand in Japan and Korea after its run-ins with the Food Safety and Standards Authority of India (FSSAI).

"Invest India has lined up investment of close to $40 billion and we are working to ensure all this flows into the country. The list includes Dalian Wanda Group, China's largest commercial property company and the world's largest cinema chain operator, which is looking to invest around $10 billion. Then there is Lotte, the conglomerate from South Korea, which has evinced interest in development of railway stations and tourism," an officer told ET.

Another set includes companies that had planned to invest India but didn’t do so due to the regulatory hurdles. In such cases, the department is seeking to get the government agency or the state concerned to address the problem, said officers working on implementing the new strategy.

For instance, a Chinese company was not getting safety clearance for a gas pipeline which was connected to its plant. The issue was sorted out soon after the government took up the issue with the Petroleum and Explosives Safety Organisation.

"Often the complaints are minor such as connectivity to the ports or VAT refunds and once the issue is taken up with the agency concerned, the problem is sorted out and investors feel comfortable to invest," said an officer.

It has been confirmed by the sources that there is a mechanism to deal with complaints from Japanese companies and a fast-track system has also been put up for German firms.

A new strategy, also referred to as Make in India 2.0 by some, is also aiming on a country specific pitch, focusing on medium scale enterprises.

The new investment seeking techniques come along with the pitch made at global events where India's rapid growth and stable policies are being showcased.
(image:Indiatimes)