The government is considering the creation of a National Investment Grid to map business opportunities across the country.
The idea is that this may encourage private investment, which has been a laggard. The proposed grid will have details of upcoming projects as well as those that are underway besides land available with the Centre, states, their agencies and public sector undertakings.
The grid will give investors a bird’s-eye view of opportunities available.
The states, on the other hand, will have a platform to showcase their industrial and infrastructure development potential. Policy-makers have been concerned that domestic private investment hasn’t picked up despite several steps including faster project clearances and getting stalled projects moving again.
The regular monitoring of projects by the finance ministry to ensure that they do not end up as non-performing assets on banks’ books is also underway.
MEETING WITH INDUSTRY GROUPS
The commerce and industry ministry recently held a meeting with industry groups to take stock of issues holding up private investment.
The proposed grid will add to steps taken by states to improve ease of doing business, another official said
“Companies recognise the steps taken to improve the business environment,” the person said. “However, there are concerns about the lagging rural economy and fall in demand.”
Experts said the government also needs to step in and boost bank credit and help lenders deal with stressed assets if private companies are to be encouraged to invest.
“We realise that several steps taken by the government will bear fruit in some time,” said Chandrajit Banerjee, director-general, Confederation of Indian Industry.
“India is a bright spot but it is not completely insulated from the weak global economy.”
The government will make a worldwide investment pitch for the country’s manufacturing sector as part of the Make in India week, which will be held in Mumbai next month.