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Merely aligning more areas for foreign direct investment (FDI) is “not adequate”. It should be backed by positive initiatives to encourage FDI flow, President, Pranab Mukherjee, said here, on Monday.
“Mere aligning more areas for FDI is not adequate....We must ensure that infrastructure facilities are available; doing business becomes easier; transferring policy into action by a group of initiators; and to provide them (investors) with information (relating) to rules and regulations.
“If we can do that, surely India will be an attractive area of investment from abroad,” he said while speaking at an event organised by the Confederation of India Industry (CII) on ‘Building a Knowledge Society and Enabling Make in India’.
According to Mukherjee, recent steps to upgrade FTA with ASEAN – to include services and investments (earlier it included goods only) – “will help Indian industry grow”.
The Indian economy, he said, has already proven its resilience with a 7.3 per cent GDP growth last year; when global economic recovery post the slowdown of 2008 has been slow. The economy is expected to grow at 7.5 per cent GDP for the next two years.
Infrastructure snagsMukherjee said for attracting investments, policies work best when complemented with top class infrastructural facilities.
“Policy formulation and (policy) conducive prescriptions are not adequate; unless there is infrastructural adequacy. And that must be of quality,” he said. The proposed industrial and freight corridors – with world class facilities – need to come up with manufacturing being the key economic driver. These proposals will ensure the share of manufacturing to the GDP moves up. Only then, can India take advantage of its demographic dividend.
Demographic dividend, can turn into a “tremendous liability” if the same set of population is not given the right education; is not employable with appropriate skill-sets; or have job opportunities.
Knowledge societyThe President reiterated the need to have “first class” education facilities and innovation. The need of the hour is to improve the quality of higher learning and institutions; and set up a knowledge society.
A better interface between industry and academia is important in this regard.
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