The lead information suggests a perceptible improvement in the overall investment climate, despite some limitations pertaining to quality infrastructure and entry and exit barriers.
Industrial investment intentions peaked in 2004 at nearly double the value of even the best year since 1991. Improved investment prospects were facilitated to a large extent by the considerable procedural simplifications introduced during the year. Industry-wise distribution of investment intentions continues to show a preference for textiles, metallurgical industries and chemicals other than fertilizers. The preference to textiles is a reflection of the intention of tapping the opportunities in the post-ATC regime.
The Government has also constituted the Investment Commission. The Commission will interact with industry groups/houses in India and large companies abroad, particularly in sectors where there is a dire need for investment but adequate investment has not taken place so far. The Commission would endeavor to secure a certain level of investments every year and will make recommendations to the Government both on policies and procedures to facilitate greater FDI inflows into India.
