New Delhi: The European Union (EU) today asked India to further open its economy for foreign investments even as the country has taken tentative steps towards liberalising foreign direct investments (FDI) in sensitive defence and multi-brand retail sectors.
"We would like India to further open its economy to EU investments," the head of the delegation of the EU to India, Daniele Smadja, said at a Federation of Indian Chambers of Commerce and Industry (FICCI) function here.
She said that the 27-member economic bloc has an open regime for FDI and the EU want to take it forward with India.
"We are ready to commit to full openness towards Indian investment...," Smadja said.
The EU accounted for 27% of FDI India received in 2009. The Netherlands, Germany and the UK are the main investors.
The ambassador said the proposed comprehensive free trade agreement between India and EU would bring more predictability in the bilateral investment relations.
"Concluding the free trade agreement (FTA) negotiations will send clear signal of engagement on both sides...we need to seize this opportunity," she said.
She added the negotiations for the trade pact are likely to be completed this year.
Under the Lisbon Treaty, investment policy will be developed and managed at the European level giving the EU a strengthened negotiating hand.
"We will therefore be able to integrate both investment liberalisation and investment protection to our talks with India, which will make the agreement more comprehensive...," she added.
The EU is the largest investor in India but the biggest outlet for Indian investments abroad.
Tata's deal with Corus, Tata Motor's acquisition of Jaguar and Land Rover and Arcelor's acquisition by Mittal are some of the major bilateral investments.
India remained in the list of top ten countries in 2009 to have the highest FDI in the world. In 2009, the country received FDI worth $34.6 billion, while the outward FDI was $14.9 billion, an UNCTAD report said.
The country has taken several steps including simplification of it foreign investment policy to attract FDI.
Recently, the industry ministry has started debate to open sensitive defence and multi-brand retail sectors to foreign investors. While 26% FDI is allowed in defence, India does not permit it in multi-brand sector that employs about 33 million people.
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when are we going to leave EASTINDIA COMPANY SYNDROM and be pragmatic like China.
Do we really wish to become one of sub Sahara countries because we are caught in the past.
time to think big and prove that we are capable to develop.