NEW DELHI. Aug 7: The Federation of Indian Chambers of Commerce and Industry (FICCI) has stressed on the need for increasing the rate of Investment from the present level of around 21 per cent to 30 per cent in

order to achieve the estimated 7 to 8 per cent growth of GDP and help to reduce the problems of poverty and unemployment, reports PTI.

There was a resource gap of nearly 10 per cent which needed to be narrowed down

by taking recourse in the form of external commercial borrowings. Euro issues, portfolio investment by. FlCCI’s and foreign direct investment. it said.

The Background paper was prepared by the Apex body for the forthcoming national conference to evolve a common economic programme for "one India."

The paper said that the total investment in these central PSUS amounted to Rs 1.59,307 crore at the end of March 1994. while average return on investment in these PSUS was just 2.78 per cent in 1993-94.

Barring oil companies, which was more or less a monopoly sector, the other public sector enterprises were incurring huge losses, and total loss incurred by 117 central PSUS amounted to Rs 5,287 crore in 1993-94.

Furthermore, suitable fiscal and financial policies were crucial to facilitate the development of different sectors of the economy, the FICCI said in the paper

India's corporate tax including surcharge was 46 per cent, whereas it was 25 per cent in Brazil. 30 per cent In Peoples Republic of China.