By IANS
New Delhi : India offers immense potential to investors because it is upgrading its infrastructure, for which it will need investments of up to $475 billion over the next five years, Finance Minister P. Chidambaram informed a business delegation from Iceland.
“India needs an investment of $475 billion in infrastructure in the next five years to support nine percent growth of which $120-130 billion will come from foreign investment,” Chidambaram told the delegates Friday here.
“Thus the opportunity is immense in terms of business potential and investment.”
Heads of companies focussed on energy and finance make up the majority of the 45-member delegation, led by Iceland’s Finance Minister Arni Mathiesen.
“Energy is one of our main resources and we are focusing on investing in these sectors in India,” Mathiesen said.
The two countries signed a double taxation avoidance agreement (DTAA) to help stimulate the flow of capital and contribute to tax stability.
The main items of export from India to Iceland are clothes, clothing accessories, textile yarns, industrial machinery and equipment, cereals. India imports cod, medical products, additives for cements, petroleum products, rubber and plastic products from Iceland.