Trade and Investment Promotion

The Central Government and the State Governments took several initiatives and measures during the year aimed at encouraging foreign investment inflows, particularly the flow of Foreign Direct Investment (FDI) into India. Major thrust areas included infrastructure development, particularly energy, power, telecom and information technology. It was the task of the Investment Promotion and Publicity Division to actively undertake effective investment promotion and publicity efforts, particularly through the Indian Missions and Posts abroad for attracting foreign investment into the country. Quite often, Commercial Wings in the Missions are the first point of contact for the foreign investor. It is, therefore, essential that the Missions are given full back-up support in their efforts in the form of providing up-to-date information about the economy, the liberalised policies and the procedures, the project and opportunities available in different sectors, the incentives offered by the Central Government and various State Governments etc. Missions are also approached by investors seeking their intervention in case of delays in respect of clearances for their proposals or in respect of other hurdles faced in the implementation of projects. For all these and related matters the Investment Promotion and Publicity (IPP) Division in the Ministry has acted as a nodal point of contact and coordination to serve as an effective channel of communication between the Missions and the relevant Ministries/State Governments or other agencies, as the case may be.

Policy

The Ministry provides inputs for policy formulations, whenever required, based on investment trends world-wide and based on the need to maintain harmony between foreign policy objectives and our economic policies. Regular feedback was received from the Missions on foreign investor perceptions about India's investment policies or about successful model/policies followed elsewhere for serving as inputs to the evolution of any new policies or to the review of an existing one, if the same was considered necessary in the national interest.

The Ministry also actively participated in the meetings of the Foreign Investment Promotion Board (FIPB), where it was represented by Secretary (Economic Relations). Investments from NRIs were given particular attention. FIPB was also empowered to give a firm ‘Yes’ or ‘No’ answer to every proposal involving FDI within a deadline of 60 days.

Promotional Efforts and Initiatives

The Ministry undertook several initiatives towards suitably projecting the various investment policies and announcements of the Government by co-ordinating with the Missions on the one hand and various economic Ministries of the Central Government and State Governments on the other. Economic news about India was regularly disseminated to all the Missions highlighting major policy decisions and new opportunities, thus keeping them abreast of developments. Missions were also encouraged to hold investment promotion seminars and workshops besides extending investment support services, for which suitable publicity material, speaking points etc. were regularly despatched. Such seminars were held by several of our Missions in identified target countries. Ministry also undertook special efforts to highlight the policies, procedures and opportunities available in the Information Technology sector.

The Missions also provided support to visiting Indian delegations including those sponsored by the State Governments by arranging suitable meetings with potential investors, local Government officials and the local Chamber of Commerce or Products Associations.

The Ministry also assisted, based on information provided by the Missions, visiting foreign investor delegations/groups in having appropriate meetings with concerned Government Departments, the Apex Chambers of Commerce, the State Governments etc. The Ministry also participated in many bilateral or other meetings/conferences involving overseas investor groups. Among the many delegations was also a 30-member International Public Affairs’s Centre (IPAC) delegation which visited India from 17-20 January, 1999. The IPAC is an association of Presidents of multinational corporations and currently has 150 leading business houses among its members.

The Ministry also actively assisted various organisations in the country such as the apex chambers, Exim Bank, Indian Investment Centre, in organising investment/trade promotion events in India including the Global Indian Entrepreneurs Conference (12-13 November, 1998), India Economic Summit (29 November-1 December, 1998), various joint business councils and other events.

The Ministry actively participated in the efforts to mobilise good response for the Resurgent India Bond Scheme launched by the State Bank of India to which our Missions lent full support. Eventually, the scheme proved a success mobilising over US$ 4.16 billion.

Publicity

The following publications were brought out this year by the IPP Division for the use of our Missions and Posts:

a) The IPP Division brought out an illustrative brochure "India - Investment Related Websites" in August 1998. The brochure gives information regarding website location and home page of several of the economic ministries of Government of India, the State Governments and a number of other investment related agencies.

b) IPP Division in association with World Link, which is the magazine of the World Economic Forum and Investor Access, a CD-ROM publisher in UK, brought out a CD-ROM on "India - Priorities for the 21st Century" in August 1998. This is a unique multimedia guide to India for Investors conveying a comprehensive picture about the evolving scene in India as the country moves towards the 21st Century. Industrial and investment policies of all the State and Union Territories have been featured along with analysis of 20 different sectors, each highlighting the potential for growth and the vast opportunities opening up. The CD also has a complete guide for foreign investors on policies and procedures for foreign investment. The hyperlinks given for important websites, the CD virtually acts as a gateway to the larger data base contained in most of the investment related websites of India.

As per the arrangement worked out with World Link, the CD was distributed by them to all the participants of the last Davos Summit of World Economic Forum. Copies of CD were also sent to all our missions abroad who sent copies to key local chambers of commerce or large corporate groups and are also using it as a presentational aide while addressing investment promotion seminars or other such speaking opportunities.

c) "Investment Avenues for Non-Resident Indians" - a new publication which gave information on investment opportunities including in portfolio investment, investments in debt securities and deposits and investment in real estate while also outlining options for returning NRIs and provided answers to some of the most frequently asked questions on NRI investment and related subjects. The brochure was also circulated to participants at the Global Indian Entrepreneurs Conference held in New Delhi from 12-13 November, 1998.

d) A revised edition of "India Means Business - Perspectives" in a user friendly format and design, giving the updated position about government's policies and initiatives in infrastructure and other sectors to attract foreign direct investment, was brought out in December 1998.

e) IPP Division took the lead in sponsoring a special supplement on the IT industry in India which appeared in the ‘Financial Times’, London on 2 December, 1998. This helped to project the outcome of the work of the National Task Force on Information Technology and Software Development and also the IT policies announced by the various State governments.

Agreements

The Ministry participated in the negotiations for drawing up of bilateral investment promotion and protection agreements that were held in respect of a number of countries. Such agreements were signed during the year with Turkey, Mauritius Bulgaria, Indonesia, Morocco and Zimbabwe.

The Ministry also participated in the negotiations relating to bilateral Civil Aviation matters with other countries. The Ministry provided legal inputs, as required, and also tendered advice based on the need for increased civil aviation links particularly with our neighbouring regions to evolve in consonance with the initiatives being taken on the foreign policy front.