India offers good returns on foreign capital- Nath
By agencies   |   Wednesday, 09 February 2005, 20:30 IST
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NEW DELHI: India offers the best returns on overseas capital, a reason for foreign investors to look at the country, Commerce Minister Kamal Nath said. "A recent survey of 500 foreign companies doing business in India has shown that as many as 77 percent of the foreign investors were making profits," Kamal Nath said. "Another nine percent were breaking even and the balance 14 percent are about to make profits," the minister added while inaugurating the two-day event organised by the Indo-American Chamber of Commerce. He said ‘even the US Department of Commerce has endorsed that profitability of American companies in India compares very well with similar such investments elsewhere. "Besides many distinct advantages that India offers, the investor finally looks at the return of investment while making a choice for investment. As existing investors would confirm, India is very good compared with other countries." Kamal Nath also said the government would promote free trade warehousing zones where 100 percent foreign investment would be allowed as in special zones. "Special economic zones would be at the centre of strategy for export growth. We have crafted a very attractive set of incentives for developers setting up the zones, and also for the units to be located within them," he said. "We hope to soon put in place a specific legislation on special economic zones, which will consolidate and streamline all related issues."

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