In what could mark a paradigm shift in India’s foreign investment policy, the government is chalking out a new strategy to bolster overseas direct investments (ODI) by Indian firms. While Prime Minister Narendra Modi stressed on the ‘Make in India’ slogan in his I-Day speech, in tune with the ruling dispensation’s nationalistic pride, ODI would be promoted as much as FDI inflows, official sources told FE.
The plan, according to the sources, includes ensuring easier access to credit from Indian banks, financial institutions (FIs) and Exim Bank of India for local companies aiming to branch out abroad. Domestic firms have complained of difficulties in getting international financing for their overseas expansion plans.
A proposal for an Overseas Investment Promotion and Protection Council, on the lines of the Foreign Investment Promotion Board, was also being considered, the sources added.