The government on Wednesday cleared 21 FDI proposals worth Rs 84.90 crore (Rs 849 million), most of which is likely to be brought in by the world's largest chemical company BASF through an open offer.
The European Union on Friday asked India to further open its economy for foreign investments even as the country has taken tentative steps towards liberalising FDI in sensitive defence and multi-brand retail sectors.
"Foreign Direct Investment (FDI) will bring along backward integration and investment in farm to fork. States like Karnataka, Andhra Pradesh, Tamil Nadu will be able to move produce more efficiently across the country", Confederation of Indian Industry (Southern Region) Chairman T T Ashok said in a statement.
The discrepancy was pointed out by the finance ministry in the light of changes in foreign direct investment norms, as specified in Press Note II issued earlier this year, while considering the company's proposal to raise Rs 708 crore (Rs 7.08 billion) through fully convertible warrants. Prior to the Press Note II, the FDI component in Kingfisher Airline was just 16.45 per cent.
The controversy over allowing FDI in retail rocked Parliament for the third day on Tuesday with a united opposition forcing adjournment of both the Houses till noon. Shortly after the Lok Sabha met for the day, members rushed to the Well, demanding rollback of the decision to allow FDI in the retail sector. Members of Trinamool Congress, a key partner of the United Progressive Alliance, kept shouting 'Cancel FDI in retail'.
Dismayed by the BJP's decision to say no to FDI in multi-brand retail in its election manifesto, India Inc has urged the party to reconsider its stand, saying the move may send a wrong signal to overseas investors.
India has not made the giant leap that was needed.
Foreign direct investment inflows in the country jumped nearly three-fold to $15 billion in 2006-07 as the world's second-fastest growing economy lured investors from across the world.
Foreign direct investment (FDI) inflows into India rose 54.8 per cent in November to $1.64 billion compared with $1.06 billion a year ago, a government statement
Bharatiya Janata Party on Wednesday charged that there were differences between Congress party and the government on allowing FDI in multi-brand retail and dared United Progressive Alliance Chairperson Sonia Gandhi, General Secretary Rahul Gandhi and other senior party leaders to make their views public on the matter.
The government on Friday said the foreign direct investment norms in the retail sector would be liberalised further to ensure that investment flows into post- harvest agriculture activities.
A proposal to hike foreign direct investment cap in helicopter and sea-plane operations, MRO facilities, charters, air-cargo and non-scheduled air operations has been moved by the civil aviation ministry for the Cabinet's consideration.
The Cabinet on Thursday approved 49 per cent foreign investment in insurance companies through the Foreign Investment Promotion Board route ensuring management control in the hands of Indian promoters.
The government on Tuesday said foreign direct investment inflows during in the current fiscal is expected to touch the $10 billion mark annually.
According to sources, the government will have to allow a minimum of 51 per cent foreign direct investment (FDI) in the multi-brand retail, the same as was permitted in single brand retail.
There is huge potential for data analytics insurance sector in India which has over 40 crore life insurance policies.
Torrent Pharmaceuticals' Rs 3,000 crore proposal for increasing FII investment limit to 35 per cent was the biggest in terms of value
In what will be a historic decision, the Union Cabinet is likely to clear a policy paper that seeks to allow 51 per cent FDI in multi-brand retail trading and 100 per cent FDI in single-brand retail on Thursday.
Notwithstanding the move to bring foreign direct investment in retail being put on hold in the face of stiff opposition, Rahul Gandhi on Fruday asserted the Congress-led UPA government was determined to implement the decision.
Bihar Deputy Chief Minister Sushil Modi tells Business Standard that foreign direct investment (FDI) in retail will cause job losses and the state doesn't want it. Edited excerpts:
The two ministers are believed to have discussed the issue of redefining foreign direct investment and foreign institutional investment to remove ambiguities.
India currently allows up to 100 per cent FDI in this sector, but the health ministry has moved a draft note for the cabinet to ban foreign investment in this sector
The Union Cabinet on November 24 approved 51 per cent FDI in multi-brand retail paving the way for global giants like WalMart to open mega stores in cities with population of over one million.
Asking the government to tweak FDI norms in multi-brand segment, retailers said sourcing rules must be made similar to that of single brand while demanding foreign firms be allowed to put only 50 per cent of first tranche of investment in back-end infrastructure.
The government should stick to the recent clarifications released on FDI in multi-brand retail trading and not ease the conditions for foreign retailers.
Insists that decisions were based on larger concerns about national security, need to insulate India from persistent global economic slowdown.
Opposition placated on multi-brand FDI, single-brand policy to be notified during Winter session.
The Foreign Investment Promotion Board on Friday cleared 68 per cent foreign shareholding in cellular company Hutchison Essar, including the 10 per cent indirect stake held by Egyptian telecom operator Orascom.
The move to open multi-brand retail to foreign direct investment may run into rough weather, with key Bharatiya Janata Party-ruled states, as well as some constituent parties of the ruling United Progressive Alliance, rejecting or being ambivalent towards the proposed policy.
The Lok Sabha will on Tuesday take up discussion on the issue of Foreign Direct Investment in multi-brand retail under rule 184 that entails voting.
Senior party leader and member of the national executive committee Yogendra Yadav said that the party had over 1.5 million members and it was only the opinion of the party officer bearers and spokespersons that was relevant.
An Enforcement Directorate (ED) investigation into alleged foreign exchange law violations by edtech major Byju's and its CEO and co-founder Raveendran Bjyu is in the final stages of completion following which a show cause notice could be served to them, official sources said Tuesday. The central probe agency had in April searched two business and one residential premises, including that of the registered company of Byju's -- Think & Learn Pvt. Ltd. -- under the provisions of the Foreign Exchange Management Act (FEMA).
But completion occupancy certificates to be mandatory.
FDI inflow of $14.6 billion in the first five months of 2008-09 showed an impressive growth of 124 per cent over the same period last year. Earlier, in October the government had expressed optimism saying India would exceed its target of $35 billion this fiscal. Sectors that attracted maximum FDI in 2007-08 were services, telecom, housing, construction activities, real estate, electrical equipment, computer software and hardware.
Facing a possible slowdown in the face of a sluggish growth in developed economies, especially in the US, the Economic Survey on suggested on Thursday a series of reforms including hiking FDI in insurance and retail sector to sustain the 9 per cent rate of economic expansion.
Prime Minister Manmohan Singh on Friday night hosted a dinner for United Progressive Alliance leaders where the Dravida Munnetra Kazhagam is understood to have insisted that government should avoid voting in Parliament on FDI in retail, making clear its reservation on the issue.
Charging the Indian government with "protectionist thinking", European Union on Monday pitched for hiking the FDI cap in media from the present level of 26 per cent.
