Govt notifies changes in FDI policy
PrintListen to this Article
The government on Friday notified changes in the foreign direct investment (FDI) policy in sectors including pharmaceuticals, defense and single-brand retail.
These decisions were announced earlier in the week with a view to make India more investor friendly and an attractive FDI destination.
“The decision will take immediate effect,” the Department of Industrial Policy and Promotion (DIPP) said in a press note.
The changes in the policy include allowing 100 per cent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and/or produced in India.
To attract investment in the defence sector, the government has removed the condition of ‘state-of-art’ technology, besides permitting foreign investment in manufacturing of small arms and ammunition.
The government has also permitted 100 per cent FDI through automatic route in broadcasting carriage services like teleports, direct-to-home and mobile TV.
In a significant reform move, the government allowed 100 per cent FDI in airlines and relaxed norms for overseas investments in brownfield airports.
In private security agencies, FDI limit was raised to 74 per cent from 49 per cent earlier.
In single-brand retail trading, government said the mandatory local sourcing norm for foreign firms “will not be applicable up to three years from commencement of the business i.e opening of the first store for entities undertaking single brand retail trading of products have ‘state of art’ and ‘cutting edge’ technology and where local souring is not possible”.
After completion of the exemption period, the foreign company in the next five years will have to meet the domestic sourcing norm at an annualised average rate of 30 per cent. Thereafter, they have to comply with the norm on an annual basis.
The DIPP also notified the changes in pharmaceuticals, in which government has allowed FDI upto 74 per cent through automatic route and beyond that under government approval.
The government has also relaxed the norms in animal husbandry sector. FDI into the country grew by 29 per cent to USD 40 billion in 2015-16. #casansaar (Indian Express)
Category : Finance | Comments : 0 | Hits : 442
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has approved the Terms of Reference for the Sixteenth Finance Commission. The Terms of Reference for the Sixteenth Finance Commission will be notified in due course of time. The 16th Finance Commission’s recommendations, upon the acceptance by the government, would cover the period of five (5) years commencing April 1, 2026. Article 280(1) of the Constitutions lays down that the modalities for setting up of a Fin...
Finance Act, 2023 received the assent of the President on the 31st March, 2023. Finance Bill, 2023 receives President's assent on Mar 31, 2023 and now its Finance Act, 2023. The Finance Act, 2023 has been enacted vide Gazette Notification dated today, March-31-2023. After obtaining the assent of the President of India, the Finance Bill, 2023 has been enacted as Finance Act, 2023.
The Finance Ministry has asked public sector banks to explore fintech partnerships and co-lending opportunities to expand their business. In the recently concluded performance review of PSBs by the Finance Ministry, sources said, lenders were asked to focus on technology and data analytics to push their lending. The ministry also urged the heads of the public sector lenders to strengthen IT security systems and cybersecurity to check fraud. &...
The Enforcement Directorate (ED) on Thursday said it has provisionally attached various immovable and movable properties worth Rs 2.14 crore of entry operators working for Shakti Bhog Foods Limited and their Chartered Accountants, in connection with a money laundering case pertaining to the bank loan fraud of Rs 3,269.42 crore. A senior ED official said that properties belonging to Devkinandan Garg, Ashok Kumar Goel, Mahesh Kumar, Devender Kumar and other entry operators a...
In a significant verdict, the Supreme Court Thursday ruled that the recommendations of Goods and Services Tax (GST) Council are not binding on the Union and the states and only have a persuasive value. The Supreme Court said that Parliament and state legislatures possess simultaneous power to legislate on GST and the recommendations of the council are the product of a collaborative dialogue involving the Union and states. It said that the GST Council...
Comments