Financial Times: India in plea to investors abroad
By Ray Marcelo in New Delhi
Published: October 20 2004 03:00
Last updated: October 20 2004 03:00
Manmohan Singh, India's prime minister, urged foreign investors yesterday to contribute to $150bn worth of planned infrastructure spending, an appeal likely to strain relations further with his government's communist allies.
Mr Singh told a business summit between India and the Association of South East Asian Nations (Asean) that the country's economic growth relied on substantial increases in domestic and foreign investment in physical infrastructure.
"We believe the Indian economy can absorb up to $150bn (£83bn) of foreign investment in infrastructure over the next 10 years. There is therefore a large opportunity for Asean businesses to invest in India," he said. India's ailing airports and railways needed more than $55bn in capital investments, alongside $75bn in power and $25bn in telecommunications, Mr Singh added.
"We will make every effort to promote such investment and to create a climate conducive for investors and entrepreneurs," he said.
Such statements are a further sign of the government's resolve to pursue economic reforms despite opposition from communist parties, which support Mr Singh's multi-party coalition from the outside.
Relations between the government and the communist bloc appear increasingly tense.
Both sides clashed last week over plans to raise the foreign equity ceiling in the telecoms sector from 49 to 74 per cent, part of several industry reforms championed by P. Chidambaram, the finance minister.
Communist parties have opposed raising foreign direct investment (FDI) levels in telecoms, citing concerns over national security. They have argued for a "Chinese strategy", insisting that foreign telecom carriers enter into local joint ventures.
In response, India's pro-reform finance ministry has revealed data showing local telecoms carriers have already exceeded current FDI limits.
Mr Singh told a business summit between India and the Association of South East Asian Nations (Asean) that the country's economic growth relied on substantial increases in domestic and foreign investment in physical infrastructure.
"We believe the Indian economy can absorb up to $150bn (£83bn) of foreign investment in infrastructure over the next 10 years. There is therefore a large opportunity for Asean businesses to invest in India," he said. India's ailing airports and railways needed more than $55bn in capital investments, alongside $75bn in power and $25bn in telecommunications, Mr Singh added.
"We will make every effort to promote such investment and to create a climate conducive for investors and entrepreneurs," he said.
Such statements are a further sign of the government's resolve to pursue economic reforms despite opposition from communist parties, which support Mr Singh's multi-party coalition from the outside.
Relations between the government and the communist bloc appear increasingly tense.
Both sides clashed last week over plans to raise the foreign equity ceiling in the telecoms sector from 49 to 74 per cent, part of several industry reforms championed by P. Chidambaram, the finance minister.
Communist parties have opposed raising foreign direct investment (FDI) levels in telecoms, citing concerns over national security. They have argued for a "Chinese strategy", insisting that foreign telecom carriers enter into local joint ventures.
In response, India's pro-reform finance ministry has revealed data showing local telecoms carriers have already exceeded current FDI limits.
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