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India seeks infrastructure FDI

NEW DELHI - The Indian government plans set up a regulatory framework for infrastructure in order to attract US$150 billion of foreign direct investment (FDI) in the sector.

This would help achieve 7-8% growth, Prime Minister Manmohan Singh announced Wednesday.

"We are working towards the creation of a regulatory framework in infrastructure sector that would be transparent and independent and based on international best practices," he said, inaugurating the third India-Asean business summit.

"We believe the Indian economy can absorb up to $150 billion of foreign direct investment in the infrastructure sector over the next ten years ... We have to create the right environment in which public-private partnership can thrive," he said.

This was necessary not only for efficient use of our resources but also efficient management and running of infrastructural services, he said.

The government has decided to raise economic growth to 7-8% over the next decade and as part of this, every effort would be made to promote investment by creating a climate conducive to investors, Manmohan said.

"I recognize that for investment to flow, improvements are required in our physical infrastructure and this area will receive the higher priority of government," he said.

(Asia Pulse/PTI)

Oct 21, 2004

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