Investment Facilitation Mechanism established between European Union and India - (14 Jul 2017)
Commercial
In a bid to strengthen trade and investment ties between EU and India, establishment of an Investment Facilitation Mechanism (IFM) for EU Investments in India has been announced. The aim of mechanism is to promote and facilitate EU investment in India by a close co-ordination between European Union and Government of India. A Joint statement of 13th EU-India Summit held in Brussels in March 2016, is the basis of present agreement. In the summit, European Union welcomed India's readiness to establish a mechanism and leaders from both sides had re-affirmed their shared commitment to oppose protectionism and to work in favour of a fair, transparent and rule-based trade and investment environment.
DIPP Secretary Ramesh Abhishek said that, "ease of doing business is a fundamental priority of government's Make in India campaign and establishment of IFM for facilitating EU investments in India is another step to achieve this goal. IFM has would pave the way for identifying and solving problems faced by EU companies and investors with regard to their operations in India. IFM will cover new investors as well as those already established in India. It would encourage EU investors to avail the investment opportunities available in India. Ambassador of European Union to India, H.E. Mr. Tomasz Koslowski said that, establishment of Investment Facilitation Mechanism is a right step in direction of strengthening trade and investment ties between EU and India. EU is largest foreign investor in India and this initiative would ensure a more robust, effective and predictable business environment for EU investors.
Regular high level meetings would be organized to assess and facilitate "ease of doing business" for EU investors in India. Further, there will discussions and solutions to procedural impediments faced by EU companies and investors in establishing or running their operations in India. Invest India, official Investment Promotion and Facilitation Agency of Government of India, will also be part of the Mechanism. It will create a single-window entry point for EU companies that need assistance for their investments at the central or state level. Participation of other relevant ministries and authorities will also be facilitated by DIPP depending on case to case basis.
EU-India Strategic Partnership was launched in 2004. EU is one of biggest provider of foreign investment in India, with a stock exceeding US$ 81.52 billion (more than 4.4 lakh crores INR) as of March 2017. EU is India’s first trade partner in goods and services. There are currently more than 6,000 EU companies present in India, providing direct and indirect employment to over 6 million people.
Tags : INVESTMENT MECHANISM LAUNCH
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