Seeking to encourage foreign direct investment (FDI) into the country, the policy has been made more friendly, rational and simple, Union Minister for Commerce and Industry Anand Sharma said today.
Addressing the delegates at a session on 'India's Growth: Greater Opportunities', he said investment limit has been raised from Rs 600 crore to Rs 1,200 crore for projects that need cabinet approval.
At present, the national investment rate is around 33-34 per cent and by the end of 12th Plan, the aim was to increase this to 36 per cent, he said.
Market diversification was India's strategic decision, he said, adding the country had successfully found new markets in Africa and other neighbouring countries.
Union Minister for Urban Development and Parliamentary Affairs, Kamal Nath said India faces an infrastructure deficit more so in the area of urban infrastructure.
Today, around 430 million people are residing in cities and in the next decade this would go up to 600 million.
Similarly, at present there are 53 cities in India and in the next 10 years, it would increase to 72 with a population of one million in each city. Hence, there was need to rapidly develop infrastructure.
Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, said India faces a challenge on the current account and fiscal deficit fronts.
Encouraging long term FDI flows would be more fruitful as the Government had decided to borrow as little as possible, he said.
With the approval of Kochi Metro, the city will experience easier and faster movement of commuters and be an example of how infrastructure can be developed in smaller cities as well, he said.
Kerala Industries Minister P K Kunhalikutty urged the Indian diaspora to explore the vast investment opportunities in the state.
FICCI President and Country Head India Director HSBC Asia Pacific Naina Lal Kidwai said India received USD 80 billion as remittances from the Indian diaspora in 2012.
"We have continued to receive considerable remittances from the Indian Diaspora which is our underlying strength. In 2012. we received USD 80 billion leaving China behind with USD 76 billion," she said.