Do you, dear readers, believe that India needs FDI in retail sector or do you feel that it will be detrimental for the economy?
Trinamool Congress, which had earlier been ambiguous on the rule under which the debate on Foreign Direct Investment should take place, on Tuesday moved a motion in Rajya Sabha seeking discussion with voting. "This House disapproves the entry of FDI in multi-brand retail," read the motion moved by Trinamool members D Bandopadhyay and Vivek Gupta under Rule 168, which entails voting.
India is one of the largest military equipment importers in the world, at over $8 billion a year.
Most states have urged the Union consumer affairs ministry to set up a retail regulatory authority before opening up the sector for Foreign Direct Investment (FDI). These views form part of the report, prepared by the ministry after seeking the views of states.
In far reaching suggestions to purge the banking industry of bad loans, global consultant PwC said that the govt must allow 100% FDI and a minimum capital of Rs 5 crore for setting up an ARC.
FDI in retail would have a limited impact on small retailers, Chairman of PM's Economic Advisory Council C Rangarajan said.
Prime Minister Manmohan Singh on Friday justified the decisions on allowing FDI in multi-brand retail and some other areas, saying these were aimed at pushing economic growth and generating employment in "difficult times".
JP Morgan's decision last week to include Indian government bonds in its Government Bond Index-Emerging Markets (GBI-EM) index and the index suite from June 2024 may be a sort of blessing for India, as the move is estimated to result in an inflow of $25 billion of foreign portfolio investments into the country. The development comes at a time when the spread between the benchmark 10-year government of India bond and the 10-year US government bond has declined to its lowest level in more than 17 years. Low yield spreads make Indian bonds less attractive to foreign portfolio investors (FPIs).
The government on Friday said it has started implementing liberal FDI rules under which proposals up to Rs 1,200 crore (Rs 12 billion) foreign equity would be cleared by the Finance Minister without seeking approval of the Cabinet Committee on Economic Affairs.
Finance Minister Jaswant Singh has cleared 38 foreign direct investment proposals worth Rs 121.46 crore (Rs 1,214.6 million), including those of the United States-based Nalco Chemicals and French company FCI.
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The cap on FDI in retail has been totally removed, while the limit in insurance sector has been enhanced to 46 per cent.
India received a record foreign direct investment of $3.75 billion (Rs 17,266.52 crore) during the calender year 2004, government said on Wednesday.
Backing Centre's decision to allow foreign direct investment in multi-brand retail, Congress leader Rahul Gandhi has said the decision will help farmers prosper by removing middlemen from the supply chain and generate new jobs.
West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee will on Monday lead a party demonstration at the Jantar Mantar in New Delhi to urge the Congress-led United Progressive Alliance government to withdraw its decisions relating to FDI in multi-brand retail, cap on subsidised LPG and diesel price hike.
The four-day logjam in Lok Sabha over foreign direct investment in retail ended Thursday with Speaker Meira Kumar allowing a discussion on the subject under a rule that entails voting.
Prime Minister Manmohan Singh will address the nation on Friday night to explain the government's recent decisions on economic reforms, which have triggered widespread political protests across the country. The prime minister will address the nation at 8 pm on Doordarshan about the recent decisions on economic reforms, officials said.
The chief minister held that foreign investors would try to capture the retail sector that would subjugate the farmers and destroy local retailers and the common man would not benefit in any way.
Etihad and Qatar Airways have held informal talks with Kingfisher and SpiceJet to expand their footprints in India.
Banerjee said that traders would be hard hit by the Centre's decision on allowing FDI entry in retail.
The government has cleared the FDI in multi-brand retail.
Proposals of Principal Financial Group, South African Breweries, AB Electrolux and Caterpillar Inc were among the 52 foreign direct investment cases totalling Rs 321 crore (Rs 3.21 billion) approved by the government on Thursday.
With her latest masterstroke, Trinamool Congress chief Mamata Banerjee has made Congress lose its credibility in the eye of the aam admi, says Sheela Bhatt
The outward Foreign Direct Investment flows from India, particularly in manufacturing and Information Technology services, have increased since late 1990s even though country's firms were investing abroad for many years, a new UN report has said.
Most of the FDI proposals, cleared by Finance Minister Jaswant Singh pertained to companies in the pharma, tractors and auto sectors.
He said policy could not be rigid, while declining to say by when FDI in multi-brand retail would be allowed.
In the wake of reforms announced by the government in insurance and pension sectors, the Bharatiya Janata Party on Thursday said that while it is not opposed to more Foreign Direct Investment in these areas, certain caveats and conditions should be met to "safeguard the interest of the people".
Finance ministry officials are of the view that current restrictions that prohibit FDI in multi-brand retail cannot be extended to franchise agreements between an Indian company and an overseas partner.
While the Congress will firm up its strategy once the ruling alliance tables the Bill, initial comments by its leaders have been encouraging.
The Samajwadi Party on Thursday said it will vote against the decision to introduce Foreign Direct Investment in retail sector in the Rajya Sabha, where the United Progressive Alliance does not have majority on its own. "We will vote against FDI in Rajya Sabha if the government brings it there," said SP's leader in the Upper House Ramgopal Yadav.
India's Commerce and Industry Minister Kamal Nath has been honoured as global 'FDI Personality of the Year 2007' by a Financial Times Group publication.
The minister is on a two-day visit to Russia for India-Russia Business Dialogue, held under the umbrella of the St Petersburg International Economic Forum 2012.
Government assured the Rajya Sabha on Thursday that security interests of the country would never be compromised while permitting larger foreign investments.
Finance Minister Jaswant Singh on Wednesday cleared 30 foreign direct investment proposals worth Rs 130.25 crore.
As Chinese President Hu Jintao arrives in New Delhi, India made it clear on Monday that the proposed regulations on security aspects of foreign direct exchange would not be loaded against any specific country, including China.
The government is considering a proposal to examine foreign direct investment applications on a sector-wise, rather than country-wise, basis to assess their threat to national security.
The Department of Industrial Policy and Promotion in its draft Cabinet has proposed to further tighten the rules for foreign direct investment in brownfield pharmaceutical sector.
White labeled ATMs are set up by private non-bank companies that own and operate their own brand of ATMs.
The Enforcement Directorate has arrested four persons including the MD of the Lava International mobile company and a Chinese national as part of its ongoing money-laundering probe against Chinese smartphone-maker Vivo, official sources said on Tuesday. They identified the four as Hari Om Rai, the MD of Lava International company, Chinese national Guangwen Kyang, chartered accountant Nitin Garg and a person called Rajan Malik. They have been taken into custody under the provisions of the Prevention of Money Laundering Act (PMLA).
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