Key government departments have come to a consensus on the definition of a "group company" in the context of foreign direct investment (FDI) in the wholesale cash & carry trade. Under current policy, while 100 per cent FDI is permitted in wholesale trade, a cash & carry entity can sell only up to 25 per cent of its turnover to group companies.
Bharti Airtel on Wednesday announced a new corporate structure to sharpen the company's focus on rapidly unfolding digital opportunities while enabling it to unlock value. The move comes at a time when digital is turning out to be a compelling proposition for players in the Indian market, where the use of smartphones and better broadband connectivity has spurred the adoption of a new range of services. Players are positioning themselves beyond the core telephony offerings, as they enhance digital engagement, build future streams of revenue and create brand differentiation, besides redefining themselves as a larger platform of digital services, say market watchers.
One of the biggest ways in which recent government actions have been seen as investor-unfriendly is New Delhi's decision to unilaterally revisit almost every Bilateral Investment Treaty it has signed with other countries, says Mihir S Sharma.
India is set to attract foreign direct investment of $40 billion in fiscal 2008-09 with overseas investors betting big on the manufacturing sector in the world's second fastest growing economy.
Currently, we are planning to construct one animation centre in Pune. We have asked PwC to prepare a detailed report for the same; it should be ready in the next four months.
The earlier perception of policy paralysis "has now changed" in the US in view of the new set of economic reforms unleashed by India.
The central bank may classify them as foreign-owned Indian banks.
The government is likely to exempt iPhone and iPad maker Apple from mandatory local sourcing rule, a move which would pave the way for tech giant opening single-brand retail stores in the country.
Oppo's FDI application approved for single-brand retail trading
Private labels remain big business for e-commerce marketplaces. They comprise almost 15 per cent of the total business of such firms.
After 100% FDI, DIPP has put a condition an e-commerce entity will not be permitted more than 25% of sales through its marketplace from one vendor or their group companies
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For India to invoke "sovereign" or "state" immunity to safeguard its foreign assets, which are under threat of getting seized in the intensifying legal battle with Cairn Energy, may come with several riders. Experts point out that the Indian government has to first satisfy the French court that the properties or assets that are under consideration are being used to dispense the state's sovereign functions.
The cap of 25% on sales to group companies likely to be removed.
Agricultural Minister and Nationalist Congress Party chief Sharad Pawar on Wednesday said Trinamool Congress, which has withdrawn support from UPA government over FDI in retail issue, had every right to take its own decision and work for it and so has the UPA government to persist with its policy.
Most of the unicorns or billion-dollar valuation firms including Flipkart, Paytm and Ola have had the maximum stakes owned by foreign funds. The founders of all these firms have either single digit stakes in their companies or in low double digits.
Softening the demonetisation blow, the Budget for 2017-18 on Wednesday halved the tax to 5 per cent on incomes up to Rs 500,000 but proposed a new surcharge of 10 per cent on incomes between Rs 50 lakh and Rs 1 crore and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors.
Last November, a lawyer for Future Retail Limited (FRL) told Delhi high court that Amazon is interfering with its lawful business and thousands may lose their jobs and FRL may go bankrupt. Senior advocate Harish Salve, who appeared for FRL, likened Amazon to East India Company. Senior advocate Gopal Subramanium, who represented Amazon, told the Future counsel to keep the "East India Company" rhetoric aside, as Amazon has invested $6.5 billion all over India and created 900,000 jobs. This drama played out in the case in which Amazon has challenged Future's $3.4-billion deal with Reliance, alleging the retailer's deal breached an agreement with the American e-commerce firm.
It is unpredictability which is bound to have a very negative spin-off which needs to be avoided, said Trade Minister Anand Sharma.
Walmart is waiting to understand as to how much multibrand retail might or might not move forward.
Uptick in growth projected in second half of current fiscal based on 10 factors including higher FDI flows, build up of demand pressure, positive GST revenue growth
"We are concerned about the data localisation law and the new e-commerce regulations...they do not fully take into account the needs of all stakeholders, including American and other foreign companies," acting principal deputy assistant secretary of the US, Thomas Vajda said.
Against the backdrop of objections by some MPs, Civil Aviation Minister Ajit Singh on Tuesday strongly defended the Rs 2,058 crore (Rs 20.58 billion) Jet-Etihad deal, saying those opposing it were "long on politics and short on facts".
International single-brand retail companies are likely to shift to a new fee-based local partnership format in India from the present equity-sharing model, once the revised policy on foreign direct investment in this segment takes effect.
'Earlier-than-expected tapering from the US, followed by rate hikes, and locally, a potential third wave, which mimics the second wave in terms of severity.'
The proposal to allow 100% FDI in the construction and maintenance segments of the railway network was floated in August last year.
RBI chief Raghuram Rajan said Asia's third-largest economy is being hampered by a drop in public and private investments.
Fitch Ratings on Thursday said the resurgence of COVID-19 infections may delay India's economic recovery, but won't derail it, as it kept the sovereign rating unchanged at 'BBB-' with a negative outlook. It projected a 12.8 per cent recovery in GDP in the fiscal year ending March 2022 (FY22), moderating to 5.8 per cent in FY23, from an estimated contraction of 7.5 per cent in 2020-21. Fitch had in June last year revised outlook for India to 'negative' from 'stable' on grounds that the coronavirus pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public debt burden.
With reduced uncertainty and clarity on the spectrum-pricing and sharing front, industry set to see positive growth and stability in the new year.
Finance Minister Nirmala Sitharaman on Tuesday said there were visible signs of revival in the economy but the GDP growth may be in the negative zone or near zero in the current fiscal.
The department of economic affairs, in its Monthly Economic Review for September, said critical reforms undertaken by the government will put India to a strong and sustainable growth path in the long run.
Major global airlines, including Gulf carriers, are keen to invest in this space.
The petroleum ministry has recommended a hike in the foreign direct investment cap in government-owned refineries to 49 per cent from the current 26 per cent.
Still, the earliest India will get to experience Apple online will be early 2020 and the company's first fully-owned signature store should be up around 2022 -- almost two decades after it had opened its first store worldwide, writes Nivedita Mookerji.
India's MRP and Packaged Commodities Acts are dated and not in line with the modern world's digital price mechanisms and comparisons.
Multinational organizations including PepsiCo and industry associations like IPA, have come in favour of India's intellectual property regime, which is being reviewed by the US administration.
Tamil Nadu Chief Minister J Jayalalithaa on Saturday upped the ante against the Centre's recent policy moves, stating, "The UPA government is unfazed by the sufferings of the common people, small traders and small farmers. The UPA's latest FDI flag is diversionary -- more to anesthetise the mammoth corruption charges against the UPA government especially when elections seem imminent."
Three foreign single-brand majors apply in the past one month.
The Foreign Investment Promotion Board, headed by DEA Secretary Arvind Mayaram, approved the proposal at its meeting in New Delhi.
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