The Centre on Tuesday announced 'big bang' foreign direct investment (FDI) reforms, easing conditions across 15 sectors,
Foreign Investment Promotion Board(FIPB) can from now onwards give approvals to proposals above Rs 5000 crore, up from the earlier threshold of Rs 3,000 crore.
Government has brought out about 35 changes in the FDI policy cutting across 15 sectors. We have expedited[ek-spu,dIt(process fast,शीघ्र निबटाना)] these changes over the last couple of weeks.
According to an official release, the crux[krúks(important point,मुख्य बिंदु)] of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route.For the sake of ease of doing business, the Industry Ministry will soon consolidate[kun'só-li,deyt(strengthen,मजबूत)] all FDI-related instructions contained in various notifications
The release said refining of foreign investment norms in construction is to facilitate the construction of 50 million houses for poor.
According to Industry Ministry data, India received FDI of $19.39 billion during January-June 2015, an increase of 30% over the same period last year.
Construction sector: Conditions of area restriction of floor area of 20,000 sq. metres in construction development projects and minimum capitalisation of US$ 5 million to be brought in within the period of six months of the commencement[ku'men(t)s-munt(beginning,शुरुवात)] of business have been removed.
Defence: Foreign investment up to 49% will be under automatic route. Proposals for foreign investment in excess of 49% will be considered by FIPB. Earlier, foreign investment up to 49% is permitted under government approval route.
Broadcasting: In terrestrial broadcasting FM (FM Radio), and in up-linking of ‘news & government route current affairs TV channels FDI upto 49% is allowed through the FIPB route, while 100% FDI is allowed through the automatic route in up-linking of non-‘news & current affairs TV channels.
Banking: In private sector banking, the government has allowed full fungibility[fún-ju'bi-lu-tee(exchangeable,विनिमय)] of foreign investment in private sector banking.
Plantation: The government also decided to plantation activities namely; coffee, rubber, cardamom, palm oil tree and olive oil tree plantations also for 100% foreign investment under automatic route.
NRIs: Investment by companies/trusts/partnerships owned and controlled by NRIs on non-repatriation basis will now be treated as domestic investment.
E-Commerce: Manufacturers have been allowed to sell their product through wholesale and/or retail, including through e-commerce without government approval.
Retail: The government has eased FDI policy conditionalities for single-brand retail trading, besides permitting 100% FDI in duty-free shops.
LLP: 100% FDI in limited liability partnerships (LLPs) has been permitted under automatic route.
Aviation: Regional air transport service will be eligible for foreign investment up to 49% under automatic route. Under the present FDI policy, foreign investment up to 49% is allowed only in scheduled air transport service/ domestic scheduled passenger airline.
Foreign equity caps of certain sectors - non-scheduled air transport service, ground handling services, satellites establishment and operation and credit information companies have now been increased from 74% to 100%.
No comments:
Post a Comment