Additional investment of $190 billion has to be made in the next eight years.
The Government on Thursday said foreign direct investment will not be allowed in housing projects for urban poor.
"AAP has done a fabulous job highlighting corruption and governance issues and have a good platform for that, but their economic platform is very scary," Venktesh Shukla, president, The Indus Entrepreneurs Silicon Valley, the largest TiE chapter, told Rediff.com. "Valley investors are watching India minutely; the next few months are very crucial for Silicon Valley investors."
It is a myth that FDI in retail will kill at local kirana stores.
Propelled by strong growth in the pharmaceutical sector, India's foreign direct investment jumped over 133 per cent to $814 million during April-June 2004 as compared to $349 million reported in the corresponding quarter last year.
Leader of Opposition in the Rajya Sabha Arun Jaitley on Tuesday blamed Congress President Sonia Gandhi and her Congress General Secretary son Rahul for the FDI decision. Jaitley said that the decision on FDI was taken without bothering that it will hurt the interests of farmers, small traders as well as consumers, and would in no way help the economy.
Industry body CII has asked the governments of Delhi and Rajasthan to reconsider their decisions to scrap the FDI policy for multi-brand retail as such investments would help create millions of jobs and benefit consumers.
The government has cleared 12 foreign direct investment (FDI) proposals that will bring in Rs 212 crore (Rs 2.12 billion), of which the largest chunk will be by US-based Millennium India Acquisition Company. Meanwhile, 13 proposals, including two from B A G Films, were deferred by the government, according to an official statement. The US-based company will bring in Rs 159.92 crore (Rs 1.59 billion) of FDI to acquire stakes in two non-banking finance companies.
Before concluding that the current level of FDI flows is a reflection of India coming into its own with regard to manufacturing, it is important to carefully study the numbers and to understand the story that they tell.
The stipulation that new front-end stores will have to be set up will impact M&A in the sector.
Gujarat riots, terror attack in the United States and SARS outbreak in South East Asia led to a massive fall in foreign direct investment in India during 2001-02 to 2003-04, according to an Assocham report.
While Federation of Indian Chambers of Commerce and Industry extended an all-out support to the government, Confederation of Indian Industry recommended 'a calibrated approach for introducing FDI in the retail sector in terms of the percentage and minimum capitalisation requirements'.
Opposition members created an uproar in both Houses of Parliament on Monday over issues like allowing 51 per cent Foreign Direct Investment in multi-brand retail, demand for Telangana state and threat to people of Kerala due to Mullaperiyar dam.
On the retail FDI issue, a possibility being talked about in the corridors of power is the Congress might withdraw its support to AAP in Delhi.
The finance ministry on Wednesday ruled out more than 26 per cent foreign direct investment in pension sector and said fund managers would be selected through a competitive bidding process.
Remaining firm in her party's opposition to the United Progressive Alliance government's decision on FDI in retail, Trinamool Congress chief Mamata Banerjee has told Prime Minister Manmohan Singh that her party is not in favour of the government being toppled.
The FIPB, headed by Finance Secretary Arvind Mayaram, at its meeting on Tuesday considered 35 proposals.
Sharma proposes to pass on the 'handover note' to his successor, which as per the poll projections is likely to be from Bharatiya Janata Party-led National Democratic Alliance.
The foreign direct investment in the country declined by 25 per cent to $2.04 billion in January compared to the same month last year, snapping a trend of positive growth in the previous three consecutive months.
During Abe's tenure, Japan had announced support for a number of major projects. These included the bullet train project between Mumbai and Ahmedabad, besides allocations for a freight corridor between Mumbai and New Delhi.
'As our per capita income increases and various demographic segments emerge, the need for various kinds of protection and risk covers will become even more explicit.'
India was fourth in 2008, in terms of FDI inflows, among developing countries, he said referring to UNCTAD World Investment Report (WIR) 2009.
Retail sector seeks industry status, which can reduce the cost of capital and to allow FDI in retail that can increase investments and global competitiveness.
Finance Minister Pranab Mukherjee may be right in pushing for FDI in retail because reports have been pouring in, indicating that the economic downturn in India and abroad will worsen in coming weeks. Sheela Bhatt examines the politics behind the government's decision.
Bharatiya Janata Party-led National Democratic Alliance on Monday accused the government of allowing foreign direct investment in retail with an aim of distracting and disrupting Parliament that was set to discuss crucial issues of price rise and black money.
Buoyed by favourable policies, India has emerged as the fourth largest destination in Asia for foreign direct investment, attracting over Rs 20,000 crore (Rs 200 billion) within the first six months of the current fiscal year.
SSTL is the second operator after Vodafone that has approached FIPB for raising FDI limit.
Gujarat Chief Minister Narendra Modi on Friday accused Prime Minister Manmohan Singh of "acting" in the interest of United States first in getting the nuclear deal through and then allowing FDI in multi-brand retail and questioned why he did not "turn active in India's interest".
The Union Cabinet on Thursday is believed to have deferred a proposal for hiking foreign investment cap in telecom sector to 74 per cent from the existing 49 per cent.
The officials say no "concrete move" has yet been taken to take the matter to the Union cabinet for approval after the recommendation of the Committee of Secretaries (CoS) on July 22 to allow 51 per cent FDI.
Foreign direct investment into India is expected to touch $15 billion by the end of the present fiscal, with more overseas firms eyeing good returns from the sub-continent.
It came down from $1.94 billion in 2009-10 to $1.17 billion the next year and to $1.11 billion in 2011-12.
The note recommends allowing FDI in domestic firms through the issue of partly-paid up shares and convertible warrants, but with certain riders.
The government on Friday cleared 24 FDI proposals valued at Rs 158.82 crore (Rs 1.58 billion), including ICICI Bank's Rs 44.45 crore (Rs 444.5 million) American Depository Shares offering and proposals of Colgate Palmolive and Bausch & Lomb.
Government is planning to allow foreign direct investment in the construction sector, Commerce and Industry Minister Kamal Nath said on Tuesday.
The government has approved 16 projects envisaging foreign investment worth Rs 1,647 crore (Rs 16.47 billion), while deferring Punj Lloyd's proposals for lack of security clearance.
In June 2008, the FDI inflow was USD 2.39 billion. However, the total foreign investment inflows during April-June contracted by over 30 per cent to $7.02 billion over the same quarter of 2008-09.
The UPA government hopes the logjam in Parliament over FDI in retail will end on Wednesday with the move to 'hold back' the Cabinet's decision on the issue. But things may not be that simple. Sheela Bhatt reports on the possible scenarios that may emerge.
The Bahujan Samaj Party on Thursday kept its cards close to its chest on the issue of a debate in Parliament on FDI in retail, saying the government should first decide under what rule it wanted such a discussion.
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