Gulf investors have
sought easier entry and exit norms and stable tax regime to enhance their investments
in sectors like infrastructure and real estate in India, Economic Affairs
Secretary R Gopalan said Tuesday.
came forward (after the road shows in some Gulf nations). They wanted entry and
exit to be made easy and stability in the policy taxation regime. They are
looking at investment in sectors related to infrastructure, manufacturing and
real estate," Gopalan told reporters.
He was briefing
them about the outcome of the road shows held in Dubai and Riyadh (Saudi
Arabia) to attract investments from there to India.
In a major
initiative to attract foreign capital and stabilise rupee, the government had
last month permitted Qualified Foreign Investors (QFIs) from the Gulf nations
and all EU nations to invest directly in stock markets.
sub-limit of USD 1 billion for QFI investment in corporate bonds and mutual
fund debt schemes has also been created.
Earlier, only QFIs
from 34 FATF (Financial Action Task Force) member nations were allowed to
directly invest in stocks.
As per an estimate,
individual foreign investors could bring in about USD 90 billion to India in
the next two years.
The team lead by
Gopalan met several potential QFIs, FIIs, wealth funds, PE investors and wealth
fund managers and advisors during the road shows.
them in a very extensive exercise. We hope that by this interaction we will be
in a position to allay apprehensions" he said, adding, "I could see
their interest in India".
The secretary said
participants in the shows wanted to know more about issues like GAAR (General
Anti-Aviodance Rule) and political situation in India.
"That part of
the world is not agitated with it (GAAR). But going forward they are more keen
to know how these provisions will operate," he said.
A QFI is an
individual, group or association resident in a foreign country that is
compliant with FATF standards. QFIs do not include FIIs/sub-accounts.
Last year the
government had created QFI category and allowed them to invest in MF debt