Abu Dhabi's International Holding Company, one of the first high-profile investors in billionaire Gautam Adani's conglomerate, has decided to sell its stake in two Adani companies. In a disclosure, IHC said it has "entered into a definitive agreement with a buyer to dispose of its FDI investment in Adani Green Energy Ltd and Adani Transmission Ltd". It, however, did not name the buyer.
Last year, India was ranked second in global FDI flows after China. While China continues in the top place, the US climbed up to second place this year, thanks to a surge in investments by Chinese and Indian companies, who acquired several sick American firms.
The UN Conference on Trade and Development study -- World Investment Report 2010 -- ranks India as the 9th most attractive destination for foreign direct investment, up from 13th last year. It received $35 billion in FDI in 2009.
India received $2.21 billion in foreign direct investment in February, showing an annual growth of 74 per cent, taking cumulative inflows to $28.40 billion for the April-February period of the last fiscal.
In February, 2010, India attracted foreign direct investment (FDI) worth $1.7 billion. During the 11-month period from April, 2010, to February, 2011, FDI inflows into India declined by 25 per cent to $18.3 billion, which makes it imperative for the country to fine-tune its policies to attract overseas investment.
The government had provided some relief to domestic airlines when ATF prices had sky-rocketed, Patel said, adding 'it would not be possible now.'MIAl has proposed that it may be allowed to levy Rs 350 per domestic passenger and Rs 1,300 per international passenger to meet its funding requirements.
A panel headed by Economic Affairs secretary Arvind Mayaram had suggested FDI limit be raised to 49 per cent in almost all sectors through the automatic route.
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.
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.
"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 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'.
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.
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.
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.
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.
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
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 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.
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.
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.
There is huge potential for data analytics insurance sector in India which has over 40 crore life insurance policies.
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.
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
Torrent Pharmaceuticals' Rs 3,000 crore proposal for increasing FII investment limit to 35 per cent was the biggest in terms of value
'India needs many more job creators, both in manufacturing and services, to make it big.' 'For that, the red carpet must be rolled out fully and for all investors without holding back,' suggests Nivedita Mookerji.
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.
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.
Opposition placated on multi-brand FDI, single-brand policy to be notified during Winter session.
Insists that decisions were based on larger concerns about national security, need to insulate India from persistent global economic slowdown.
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.
Improved monsoon, solid fiscal performance, and capex push by the public and private sectors augurs well for India's macroeconomic stability and growth, the finance ministry's monthly economic review for June 2023 said. But the report said that while India's domestic fundamentals remain strong, negative cross-border spillovers and adverse global developments could act as a deterrent in achieving the high growth path this financial year. "An improved matching of aggregate supply and aggregate demand in the Indian economy underpins the progress made in the control of domestic inflation and the consequent strengthening of macroeconomic stability," the review said.
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.
