National Investment Grid to boost investment
The government may embark on a new National Investment Grid to give a push to investment in the country. The investor friendly grid will help in identifying opportunities and facilitating investment across various sectors in India. The grid will be a part of the larger 'Invest India' initiative which aims to make investment simpler by consolidating procedures to a single point of contact.
National Investment Grid is a new plan initiated by the government aimed at facilitating 'ease of doing business'. It will track ongoing and upcoming projects and also provide crucial information on availability of land for infrastructure and industrial development. While the grid is still in planning phase, it is expected to help investors by providing an overview of the country's untapped business potential.
Invest India is an agency created by the government to promote investment in the country. It is a joint venture involving FICCI(Federation of Indian Chamber of Commerce & Industry), DIPP (Department of Industrial Policy and Promotion under Union Ministry of Commerce & Industry) and state governments. Invest India has also setup an Investor Facilitation Cell to answer investor queries and speed up investment proposals.
According to the Department of Industrial Policy and Promotion (DIPP), the total FDI in India has grown by 24.5% to $45 billion during FY2015 (Apr'14-Mar'15), as compared to $36 billion in FY2014 (Apr'13-May'14).
According to the Twelfth Five Year Plan (2012-17), India requires large scale investments amounting to $1 trillion, half of which will come from private sector. Even though the rise in FDI in the country is encouraging, domestic private investments have not been forthcoming. Hence, the government, through the investment grid, aims to attract investors by simplifying processes to achieve double digit GDP growth rate.
The national grid on investment will offer all investment related opportunities under one roof. It will involve all stakeholders including state governments and their industrial development bodies, central government and DIPP, public sector enterprises, etc. The Invest India team is also being ramped up from current 20 members to 60 members to cater to the growing needs of investors.