Lok Sabha Question No. 462 (STARRED), answered on 2018-03-28
Subject: Investment Centres
Ministry: EXTERNAL AFFAIRS
Asked by: SADASHIV KISAN LOKHANDE

## GOVERNMENT OF INDIA MINISTRY OF EXTERNAL AFFAIRS

## LOK SABHA STARRED QUESTION NO.462

TO BE ANSWERED ON 28.03.2018

## INVESTMENT CENTRES

- † *462 SHRI SADASHIV LOKHANDE:

Will the Minister of External Affairs be pleased to state:

- (a) whether   the   Government   has   any   proposal   to   set   up   overseas investment centres in different countries to attract investment from overseas Indians;
- (b) if   so,   the details thereof and the locations identified for setting up these centres;
- (c) the names of countries where such centres have already been set up; and
- (d) the details of the functions of these centres and the names of the countries where these centres are likely to be set up in future?

## ANSWER

THE MINISTER FOR EXTERNAL AFFAIRS (SHRIMATI SUSHMA SWARAJ)

- (a) to (d) A Statement is laid on the T able of the House.

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## PRIORITY-II

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA   STARRED   QUESTION   NO.   462   REGARDING   'INVESTMENT

CENTRES' FOR ANSWER ON 28.03.2018 (a) to (d) Following   the   merger   of   the   erstwhile   Ministry   of   Overseas   Indian Affairs with the Ministry of External Affairs in February 2016, the Overseas Indian Facilitation Centre (OIFC) was closed down and the work related to promotion of investment in India by Overseas Indians was transferred to Department of Industrial Policy & Promotion (DIPP). DIPP has set up 'Invest India', a joint venture company between the Department and FICCI, as a not-for-profit, single window facilitator, for prospective   overseas   investors   and   to   act   as   a   structured   mechanism   to   attract investment. Its experts, specializing across different countries, Indian states and sectors, handhold investors through their investment lifecycle and they operate only from India. Indian   Missions/Posts   abroad   are   promoting   and   facilitating   economic engagement of overseas Indians with India by way of organizing Seminars, Trade fairs, Exhibitions,   Road   Shows,   interactive   Meets   etc.   and   are   working   as     Investment Centres. In the light of the importance of foreign direct investments for economic growth and development, the Government has put in place an investor-friendly policy, wherein except   for   a   small   negative   list,   most   sectors   are   open   for   100%   FDI   under   the Automatic   route.   The   policy   allows   special   dispensation   for   NRI   investments   & investment made by NRIs on non-repatriation basis under Schedule 4 of Foreign Exchange Management Act, 1999 (FEMA) Regulation is deemed to be domestic investment at par with the investment made by residents. Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive & investor friendly destination.

These   measures   are   expected   to   increase   FDI,   which   complements   and supplements domestic investment. Domestic companies are benefited through FDI, by way   of   enhanced   access   to   supplementary   capital   and   state-of-art-technologies; exposure to global managerial practices and opportunities of integration into global markets resulting into increased production, export and employment generation of the country.

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