Emulate Chinese model for hiking NRI investment: Panel

NEW DELHI: A Parliamentary Committee has pulled up the Government for its inability in attracting Foreign Direct Investment in "productive sectors" and suggested policy changes on the lines of the Chinese model to attract more investments from Non-Resident Indians.

In its 51st report, the Parliamentary Standing Committee on Commerce asked the Government to make efforts to attract NRI investment in the country on a large scale, "by providing additional flexibilities and concessions" and suggested that "the Chinese model of investments by non-resident Chinese in China could be worth emulating for the benefit of the country".

The 33-member committee, chaired by Kailash Joshi, noted that large FDI inflows would depend upon domestic economic conditions and FDI policy, world economic trends and strategies of global investors.

"The FDI policy does not seem to have succeeded in targeting investment in productive sectors, namely power, capital goods etc, which are primary sectors for accentuating real economic growth of the economy.

The Committee therefore recommends that policy should be directed towards investments in such productive sectors," it added.