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.