Foreign Investment Report of the Steering Group on Foreign Direct Investment

Abstract

The 2002 Planning Commission report on Foreign Direct Investment (FDI) in India examines global trends, identifies barriers to investment, and proposes comprehensive measures to enhance FDI inflows during the Tenth Plan period. Key challenges include regulatory complexity, procedural delays, poor infrastructure, and negative perceptions of India as an investment destination. Recommendations focus on regulatory and tax reforms, liberalizing sectoral investment caps, strengthening Special Economic Zones (SEZs), improving institutional frameworks like the FIPB and FIIA, and promoting India’s global image. The report also outlines procedures for the Infrastructure Authority to manage and monitor infrastructure projects, emphasizing private sector participation, risk management, and transparent project delivery mechanisms. Implementation of these reforms aims to create a favorable investment climate, attract international capital, and support India’s economic growth objectives.