India's investment climate looking good: PM

NEW DELHI: India's investment climate has improved and the economic outlook for the near future is positive, despite constraints due to high oil prices and gaps in infrastructure, Prime Minister Manmohan Singh said on Thursday.

Encouraged by the buoyancy in the economy, he asked Commerce and Industry ministry and others to prepare a policy proposal for the consideration of the Cabinet using inputs from the Investment Commission and National Manufacturing Competitiveness Council reports.

At the meeting of Prime Minister's Council on trade and industry, Singh also said that these reports be sent to the Chief Minister's of all states to get feedback from them.

He also asked the Indian industry to take a more serious look at investment and trade opportunities in South Asia, South East Asia, West Asia and Central Asia.

"I am aware of the concerns expressed by some of our businesses in this regard. Our government will be sensitive to genuine concerns," the Prime Minister said at the meting, which considered the report prepared by Investment Commission and NMCC.

Singh also favoured greater attention to research and development to improve the competitiveness of the Indian industry.

He also asked his cabinet colleagues to focus on employment generation and pay special attention to issues like displacement of rural folks in areas where large industrial units are being set up.