The chamber has further suggested that the government expand the list of high priority industries. Besides, there should be time-bound decisions by the Foreign Investment Promotion Board (FIPB).

The Phdcci felt that the government should continue with the existing policy of automatic approval for high priority industries and case-by-case approval for other industries. However, there is a need to speed up approvals and put in place mechanism for speedy implementation, it felt.

The chamber observed reforms are yet to trickle down to the operating level, though the current FDI policy is balanced with reasonable prioritisation. As the result many infrastructure projects which have been approved are held up due to bottlenecks at the implementation stage.

There is aneed for a mechanism to improve cooperation and coordination between the central and state governments in granting clearances, it said. This, it felt, would remove bureaucratic procedural hurdles that were holding up the implementation of the projects.

Foreign direct investment (FDI) should be encouraged in real estate and urban housing sector and financial sector and insurance in view of huge funds required for infrastructure development, the chamber has recommended.

The chamber has also made a case for the permitting mergers and acquisitions in sectors where Indian industries were operating at very low levels.