European Union and India establish an Investment Facilitation Mechanism
On July 14, 2017, European Union (EU) and India announced the establishment of an Investment Facilitation Mechanism (IFM) for EU Investments in India.
At 13th EU-India Summit held in Brussels in March 2016, India had expressed readiness to establish such a mechanism.
- Trade and Investment are key elements of the EU-India Strategic Partnership launched in 2004.
- EU is one of the biggest providers of foreign investment in India, with a stock exceeding US$ 81.52 billion as of March 2017.
- There are currently more than 6,000 EU companies present in India, providing direct and indirect employment to over 6 million people.
Details about Investment Facilitation Mechanism (IFM):
The mechanism will allow for a close coordination between the European Union and the Government of India with an aim to promote and facilitate EU investment in India.
- As part of the IFM, the EU Delegation to India and the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, agreed to hold regular high level meetings to assess and facilitate “ease of doing business” for EU investors in India.
- This will include identifying and putting in place solutions to procedural impediments faced by EU companies and investors in establishing or running their operations in India.
- Invest India, the official Investment Promotion and Facilitation Agency of the Government of India, will also be part of the mechanism. It will create a single-window entry point for EU companies that need assistance for their investments at the central or state level.
- The DIPP will also facilitate participation of other relevant ministries and authorities on a case-to-case basis.
- Tomasz Koslowski, Ambassador of the European Union to India has mentioned that his initiative will help in ensuring a more robust, effective and predictable business environment for EU investors in India.