SEZ agitations have little impact on India's FDI zeal

NEW DELHI: India continues to be an attractive foreign direct investment (FDI) destination to foreign investors despite controversies over special economic zones (SEZs), a global investments expert here said.

Noting that the SEZ issue was a "political landmine" in India, Courtney Fingar, editor of Financial Times' global investments magazine fDi, said SEZ investment is a "double- edge sword" that could be a mode of development at some places but not everywhere.

"It may be too early to say what it will do for India, but apart from anything else, the creation of such zones do send a signal to the global business community about the country's keenness for FDI," Fingar said.

He was here to felicitate Commerce and Industry Minister Kamal Nath who was selected for the "fDi Personality of the Year" award among other business and political leaders from Latin America, Africa, Middle East, Europe and North America.

JVDheldden, the Indian arm of fDi, also released a study called "India as FDI Destination" which said despite huge FDI interests, the country is not realising its full potential because of the business environment and policy- related impediments.

Noting that GDP growth accelerated at 9.4 per cent during the last fiscal, JVDheldden director Suren Uppal said a significant increase in investment levels will be required for a sustainable growth of 8 per cent.

The promise of 500 million dollar-plus investment opportunities in diverse sectors in India was marred by the obstacles at various levels, he said.