Commerce Minister urges next government for liberal FDI regime

Apprehensive over next government’s intent of tweaking FDI policy especially in retail, Commerce and Industry Minister Anand Sharma has prepared a 'handover note' advising his successor for retaining a liberal economic outlook and viewing FDI as a source of not only ‘precious foreign exchange’ but also that of technology, investment and jobs. The minister’s concerns about the FDI policy regime is derived from the fact of BJP’s reiteration of revisiting the foreign investment in the multi-brand retail sector, if it forms the government, which now is looking not far away from reality. The letter, which will be handed over to the next Commerce and Industry Minister, emphasizes the need of market diversification, the crucial role played by India in the World Trade Organization (WTO) and the need to engage with East Asian and Asia Pacific countries. It also urges on normalization of economic relations with Pakistan for greater peace and prosperity of the region. Further, the Minister also batted for careful negotiations in the proposed Regional Comprehensive Economic Partnership which will form the biggest trading bloc in the world. It includes the 10 countries of Asian, India, Japan, Korea, China, Australia and New Zealand. Additionally, the draft letter also highlighted the need of reassurance on the stability and predictability of foreign investment regime in India for the overseas investors, which would not only be in India’s national interest but so far has been a healthy tradition of country’s democracy.