Anand Sharma’s parting shot: new government must pursue FDI reforms
16 May 2014
Union commerce and industries minister Anand Sharma, during his last day in office, has reportedly prepared a draft 'handover' letter for his successor urging him or her to continue with the Foreign Direct Investment (FDI) policies created by the United Progressive Alliance government, which is on the verge of a humiliating electoral defeat.
He also made a case for improving economic relations with Pakistan for greater peace and prosperity in the region.
The letter, which will be handed over to the next commerce minister, stresses the importance of market diversification, the crucial role played by India in the World Trade Organisation, and the need to engage with East Asian and Asia-Pacific countries, a commerce ministry official told Hindu Businessline.
The minister, who attended his office for the last time on Thursday, pointed out that his government had pursued a liberalised FDI policy and opened up crucial sectors of economy to foreign investment, including aviation, retail and telecom.
As a result, India received nearly $200 billion of FDI in the last five years, and was rated amongst the top three investment destinations globally, he said.
''It is imperative for me to underscore that foreign investors need a reassurance on the stability and predictability of foreign investment regime in India. This would not only be in India's national interest but it has been a healthy tradition of our democracy,'' the draft letter said.
Sharma said the UPA government, in its second term, took important steps in establishing better trade relations with Pakistan, which the new minister should continue. ''It would be important to persist with this road map because I firmly believe that normalisation of economic relations with Pakistan lies at the heart of a peaceful South Asia,'' the draft letter said.
The commerce minister also called 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 ASEAN along with India, Japan, Korea, China, Australia and New Zealand.
