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.
Torrent Pharmaceuticals' Rs 3,000 crore proposal for increasing FII investment limit to 35 per cent was the biggest in terms of value
There is huge potential for data analytics insurance sector in India which has over 40 crore life insurance policies.
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.
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.
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.
The two ministers are believed to have discussed the issue of redefining foreign direct investment and foreign institutional investment to remove ambiguities.
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.
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.
The government on Tuesday said foreign direct investment inflows during in the current fiscal is expected to touch the $10 billion mark annually.
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 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.
'With China falling out of favour, India is where investors see the demographic and digital dividend apart from the benefits of reforms playing out.' 'Your prime minister has also done a great job of sharing this story with the world.'
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 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.
India's current account deficit narrowed to $1.3 billion or 0.2 per cent of GDP in the January-March quarter of FY23, mainly due to moderation in the trade deficit and a robust increase in services exports, RBI data showed on Tuesday. However, for the 2022-23 fiscal, the current account balance recorded a deficit of 2 per cent of GDP compared to 1.2 per cent in 2021-22. "India's current account deficit (CAD) decreased to $1.3 billion (0.2 per cent of GDP) in Q4:2022-23 from $16.8 billion (2.0 per cent of GDP) in Q3:2022-231, and $13.4 billion (1.6 per cent of GDP) a year ago [Q4:2021-22]," as per the RBI's 'Developments in India's Balance of Payments during the Fourth Quarter (January-March) of 2022-23'.
The CBI registered an FIR against NewsClick and its founder Prabir Purkayastha for alleged violation of the Foreign Contribution (Regulation) Act and carried out searches at the office and residence of the portal's founder on Wednesday, officials said.
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 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.
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.
But completion occupancy certificates to be mandatory.
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.
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.
Demanding withdrawal of the decision, the Communist Party of India said the government had opened up telecom sector when the country was 'yet to overcome the loot and losses due to 2G spectrum scam'.
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.
In matters of policy, this court will not interfere unless it is unconstitutional, the judge declared.
Experts say with a stable government, things will start improving but the impact might be visible only after six-12 months.
"We will oppose the decision of the government both at the Centre and by the state governments. The decision of the government would not only affect our domestic retail sector but would also destroy domestic manufacture because the foreign companies would be able to buy products from other countries and flood our markets with imported goods made available at these retail chains," said a senior BJP leader who is among the policy makers in the party.
Foreign direct investment to China touched $60.63 billion in 2004, registering an impressive growth of 13 per cent, the ministry of commerce said in Beijing.
Big ticket investments by Vodafone and Matsushita Electric lifted FDI inflows in the first half of this fiscal to $7.2 billion, a 65 per cent rise from the year-ago period. India retained its position as the second most preferred destination for global investors as measured by the AT Kearney FDI Confidenx Index, 2007.
Did you miss out on the debates in Lok Sabha on FDI in retail? Read the debate texts here
At a time when the world economy is facing the worst credit freeze in several decades, India attracted $2.7-billion FDI in January, up 58.8 per cent from a year ago, and remained a favourite destination for cross-border investments.
