Finance Minister P. Chidambaram wants Indian industry to show the same confidence for their country, as they have expressed for foreign countries when investing overseas.
“We must revive investment, and industry must play its part. Industrial houses appear to be confident when they decide to invest abroad. The same confidence must be exhibited in order to invest in India,” Chidambaram said here on Wednesday. He stated that, unless this happens, it is difficult for the Government to market India as an investment destination abroad.
The Finance Minister claimed that at the meeting of India Inc members with the Prime Minister on Tuesday at least two large industrial houses had assured for making fresh investment here.
While admitting that the cost of bank loan is high, Chidambaram felt that it is not so dauntingly high that it should hold back investment.
“The RBI’s policy announced on Tuesday hints at easing of interest rates, once the rupee stabilises and there is reduced volatility in the currency market. Ample funds are available with banks,” he mentioned.
He also said that enough cash is available with banks for the industry.
“If anyone in industry finds that his credit needs are not being met, he may come to me and I shall put him in touch with the banks,” he added.
Chidambaram asked the industry especially large industrial houses to discover the sense of optimism and confidence which the agriculture sector has. He said that the effort to address problems related with stalled projects have yielded significant results. The Cabinet Committee on Investment has so far cleared 157 projects with the total investment of Rs 1.61 lakh crore.
He mentioned that unlike agriculture and services sector, industry sector presents a mixed picture. Bankers have informed the Minister that that there is good demand for credit from commercial real estate, small and medium enterprises, and retail sectors.
Credit growth to micro and small enterprises was very strong in May at 21.2 per cent on year-on-year basis.
Consumer durables lending grew by 21 per cent in May. Housing loans were up by 17.1 per cent and commercial real estate lending was up 15.4 per cent in May this year, relative to May last year.