I ndia will have to create confidence among foreign investors that there are no barriers for them to invest in the country, Prime Minister Manmohan Singh said.
” To attract foreign capital, we will have to create co
nfidence at the international level that there are no barriers to investment in India,” Singh said in his Independence Day address.
His statement comes against the backof certain sections of foreign investors expressing concerns over the government moves such as retrospective amendments to the Income- Tax laws and the General Anti- Avoidance Rules ( GAAR).
The Prime Ministers Office ( PMO) has already set up an expert committee for making suggestions on draft guidelines and framing a roadmap for the implementation of GAAR. The committee would submit its report by September 30.
” We will leave no stone unturned to encourage investment into our country so that our entrepreneurs can make a substantial contribution to our economy,” Singh said.
He also said that ambitious targets have been fixed in roads, airports, railways, electricity generation and coal production.
The government has also been making efforts to liberalise norms to attract FDI in various sectors, including multi- brand retail.
It has already raised the limit of foreign holding in single- brand retail to 100%. The government has received six proposals, including that of Tommy Hilfiger, Promod and Damiani for single- brand retailing in the country.