New Delhi, October 19
Unfazed by the criticism of the Left parties over the foreign direct investment (FDI), Prime Minister Manmohan Singh today said that the government would set up the required regulatory framework to attract the FDI to the tune of $150 billion in telecom, airports, railways and power sectors over the next 10 years.
Prime Minister also called for setting up an Asian Economic Community, comprising ASEAN, China, Japan, Korea and India, to tap the benefits of integrated market.
“We will make every effort to promote such investment and to create a climate conducive for investors and entrepreneurs to use the productive capacities and resources of our country,” said the Prime Minister while inaugurating the third India-ASEAN business summit at Vigyan Bhavan here today.
“We are working towards the creation of a regulatory framework in the infrastructure sector that would be transparent and independent and based on international best practices,” he said, adding that the Indian economy could absorb up to $150 billion FDI in the infrastructure sector over the next 10 years.
Stressing that capital requirement in infrastructure was very large, he said airports and railways alone needed $55 billion investment in the next 10 years, and power and telecom another $75 billion and $ 25 billion, respectively, in the next five years.
This, he said, provided a
large window of opportunity for the ASEAN business to invest in India and was necessary not only for the efficient use of our resources but also efficient management and running of the infrastructural services.
The government has decided to step up economic growth to 7-8 per cent over the next decade for which every effort would be made to promote investment by creating a climate conducive to investors, he said.
Prime Minister said India and ASEAN had already set the target of raising trade to $ 15 billion by 2005, and $30 billion by 2007. “These are achievable targets, if we focus on commodities which show great potential for trade,” he said.
Asserting that infrastructure would get the highest priority of the government, Dr Manmohan Singh said the acceleration of economic growth would require substantial increase in the volume of investment not only from abroad but also from the country.
Assuring the business delegates of the ASEAN, the Prime Minister said, “Our government will intensify the process of regional cooperation and integration,” adding that first fruits of trade liberalisation will be available through Early Harvest Programme, which provides for immediate tariff concessions under the Free Trade Agreement between ASEAN and India.
He called upon the state governments to play an “proactive” role in developing mutually beneficial cooperation with the ASEAN region. “The development of ports in West Bengal, Orissa, Andhra Pradesh and Tamil Nadu can rebuild maritime links of the Coromandel Coast with South-East Asia,” said Dr Manmohan Singh.
