European Union (EU) and India on Friday declared the establishment of an Investment Facilitation Mechanism (IFM) for EU investments in India.
“The mechanism will consider a nearby coordination between the European Union and the Government of India with an aim to advance and facilitate EU investment in India,” an official statement said.
Ramesh Abhishek, secretary, Department of Industrial Policy and Promotion (or DIPP – the nodal body for foreign direct investment strategy), stated: “The IFM has been set up with the key objectives of preparing for recognizing and tackling problems confronted by EU companies and investors concerning their operations in India.”
He included that the IFM will cover new investors and also those officially settled in India. “The IFM is additionally going to fill in as a platform for discussing general recommendations from the perspective of EU companies and investors effortlessly of working together in India, which I am certain, would boost and urge the EU investors to benefit the investment openings accessible in India,” said Mr Abhishek.
Simplicity of working together is a fundamental priority of the Indian Government’s Make in India Campaign and the establishment of IFM for encouraging EU investments in India is another progression to accomplish this goal, he said.
The IFM expands on the Joint Statement of the thirteenth EU-India Summit held in Brussels in March 2016, where the EU had respected India’s status to set up such a mechanism and pioneers from the two sides had reaffirmed their mutual commitment to restrict protectionism and to work for a fair, transparent and run based trade and investment environment, the statement said.
As a major aspect of the IFM, the EU Delegation to India and the DIPP will hold customary abnormal state meetings to evaluate and facilitate “simplicity of working together” for EU investors in India. This will incorporate recognizing and setting up answers for procedural impediments confronted by EU companies and investors in building up or running their operations in India. Contribute India, the Indian government’s official Investment Promotion and Facilitation Agency, will likewise be a piece of the IFM. It will make a single-window passage point for EU companies that need help for their investments at the central or state level. The DIPP will likewise facilitate support of other pertinent ministries and experts on a case-to-case premise.
Tomasz Koslowski, Ambassador of the European Union to India, stated, “The establishment of the IFM is a correct stride toward fortifying the trade and investment ties between the EU and India. The EU is the biggest foreign financial specialist in India and this activity helps guaranteeing a more robust, viable and unsurprising business environment for the EU investors.”
Trade and Investment are key elements of the EU-India Strategic Partnership propelled in 2004. Alongside being the primary trade accomplice in goods and services, EU is one of the greatest suppliers of foreign investment in India, with a stock surpassing $81.52 billion (more than Rs 4.4 lakh crores) as of March 2017, the statement said. There are right now more than 6,000 EU companies exhibit in India, giving immediate and aberrant employment to more than 6 million people.