Fema / RBI : Explore downstream investment in India, including definitions, requirements, and reporting obligations for foreign investors throu...
Fema / RBI : Explore the intricacies of Foreign Direct Investment (FDI) in India, from regulatory frameworks to setting up business operations....
Fema / RBI : A detailed analysis of Foreign Direct Investment (FDI) regulations in India for Real Estate and Hotel Business under the FDI Polic...
Fema / RBI : Form FCGPR is mandatorily required to be filed within 30 days of bonus issue allotment. In this article, we shall study about the ...
Fema / RBI : Explore the recent amendment in India's FDI Policy for the space sector, its rationale, and implications. Learn about the increase...
Fema / RBI : Explore the latest Foreign Direct Investment (FDI) policy amendments in Indias space sector. Understand the changes in caps, entry...
Corporate Law : CBI registers a case against a Delhi-based private company and its Director for alleged violations of FCRA provisions, involving u...
Corporate Law : Government has implemented several legislative and policy measures for e-commerce keeping in mind the retailers. Some of these mea...
Corporate Law : Government has put in place a liberal and transparent policy for attracting Foreign Direct Investment (FDI), wherein most sectors,...
Fema / RBI : Confederation of All India Traders (CAIT) has requested Minister of Commerce and Industry, Shri Piyush Goyal for strict action a...
SEBI : SEBI outlines the procedure for reclassifying FPI investments to FDI for holdings exceeding 10% in Indian companies, effective imm...
Fema / RBI : RBI provides guidelines for reclassifying Foreign Portfolio Investment (FPI) to Foreign Direct Investment (FDI) under new operatio...
Fema / RBI : Explore the amendments in India's FDI Policy for the Space Sector through Press Note No. 1 (2024 Series). Details on sectoral caps...
Corporate Law : Government of India announces an extension of the Industrial License validity to 15 years for ease of doing business. Read the gui...
Fema / RBI : Review of FDI Policy for permitting foreign investment in Life Insurance Corporation of India (LIC) and other modifications for fu...
Union Cabinet today cleared the bill to increase foreign direct investment to 51% in multi-brand retail and 100% in single brand. Commerce and industry minister Anand Sharma said that he would give a statement in Parliament on retail FDI. Currently, India allows 51% FDI in single brand retail and 100% FDI in cash and carry format of the business.
With Kingfisher and several other airlines landing into dire straits, the industry ministry has moved a draft Cabinet note on allowing 26% FDI by foreign airlines in the domestic carriers. Private airlines in the country are in dire need of funds for their operations and service upgradation to compete with other global carriers, the note circulated by the department of industrial policy and promotion (DIPP) said.
The government today approved amendments to the PFRDA Bill 2011 while agreeing to the proposed 26% foreign investment in the pension sector but refrained from providing assured returns to subscribers in the proposed law. The government had decided not to mention FDI cap in the legislation itself for retaining the flexibility of changing it through an executive order.
The Government of India has reviewed the extant policy on FDI and decided as under: (i) FDI, up to 100%, under the automatic route, would continue to be permitted for greenfield investments in the pharmaceuticals sector. (ii) FDI, up to 100%, would be permitted for brownfield investments (i.e. investments in existing companies), in the pharmaceuticals sector, under the Government approval route.
hri Sharma also informed that India allows 51 per cent FDI in single brand retail and government is considering the ways of raising this limit. Shri Sharma said that the micro, small and medium enterprises sector is the backbone of Indian economy, contributing 8% of our gross domestic product, 45% of manufactured output and 40% of our exports. “Earlier, the SME sector in India used to be protected and foreign investment was restricted in this sector, but recently we have liberalized this sector to enable its modernization and now the SME sector is open to foreign investment just like any other sector. We view SMEs as incubators of technology and innovation and would encourage cooperative partnerships to develop between Indian and Italian SMEs” he added.
Circular 2 of 2011 was issued on 30th September, 2011. Para NO.3.3.2.1 of the above Circular hereby stands deleted. Erstwhile paragraph 3.3.2.1 of ‘Circular 2 of 2011’ went like this:
The Foreign Investment Promotion Board (FIPB) is a government body that offers a single window clearance for proposals on Foreign Direct Investment (FDI) in India that are not allowed access through the automatic route. FIPB comprises of Secretaries drawn from different ministries with Secretary, Department of Economic Affairs, MoF in the chair. This inter-ministerial body examines and discusses proposals for foreign investments in the country for sectors with caps, sources and instruments that require approval under the extant FDI Policy (prescribed vide Circular 1 of 2011) on a regular basis.
India will continue to allow 100% Foreign Direct Investment for new ventures in the pharma sector. The decision was taken at a high level meeting chaired by Prime Minister Dr Manmohan Singh to discuss the FDI policy in drugs and pharmaceutical sector held in New Delhi last night. An official release said, the move will facilitate addition of manufacturing capacities, technology acquisition and development of the pharma sector in the country.
PM chaired a high level meeting to discuss the FDI policy in drugs and pharmaceutical sector. The meeting was attended by Finance Minister, Sh Pranab Mukherji, Health Minister Sh Ghulam Nabi Azad, Commerce, Industry and Textile Minister Sh Anand Sharma, Pharmaceutical and Chemical Minister Sh MK Alagiri, Deputy Chairman Planning Commission Dr Montek Singh Ahulwalia, Member Planning Commission.
India now with consistent growth performance and abundant high-skilled affordable manpower provides enormous opportunity for investment both domestic and foreign. Foreign direct investment (FDI) causes a flow of money into the economies which stimulates economic activity, increases employment and induces the long run aggregate supply and brings in best practices. The FDI policy was liberalized progressively through review of the policy on an ongoing basis and allowing FDI in more industries under the automatic route.
