Containing fiscal deficit and stable policies were crucial for the country to attract higher foreign investment, Commerce and Industry Minister Arun Jaitley said on Thursday.

"If we want to be a robust economy, fiscal deficit has to be reduced. Fiscal laws have to be implemented correctly and expeditiously," Jaitley, also in charge of Ministry of Law, said while inaugurating the national conference of Income-Tax Appellate Tribunal in New Delhi.

Although there was a "feel-good" factor prevailing in the country with good rainfall, better agriculture growth prospects, low inflation and high forex reserves, Jaitley indicated to the high fiscal deficit as one area of concern.

Referring to the 1,200 foreign investors' meet in Hong Kong, he said they prefer to invest in a country, which has stability of policy and fiscal procedures.

"I got the feeling that these investors, with deep pockets, are looking for opportunities to invest in India. But investors look at hardcore economic parameters and invest where they hope to get a better return," Jaitley said.

But foreign investors said "a judgement" can destabilize their investments in the country and they would prefer to invest in a country where there is stability of policy and fiscal procedures, he added.