In big bang reforms, the Union Cabinet on Wednesday approved a relief package for the telecom sector that includes a four-year moratorium on payment of statutory dues by telecom companies as well as allowing 100 per cent foreign investment through the automatic route. Briefing reporters on the decisions taken by the Cabinet, Telecom Minister Ashwini Vaishnav said nine structural reforms for the telecom sector were approved. The definition of AGR, which had been a major reason for the stress in the sector, has been rationalised by excluding non-telecom revenue of telecom companies.
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.
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 Enforcement Directorate (ED) is probing alleged fraudulent foreign funds infusion of more than Rs 86 crore into a company that runs the NewsClick portal even as it is expected to soon file a charge sheet in the case being probed under the anti-money laundering law, official sources said on Monday.
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.
The note for consideration of Cabinet will follow a review of the FDI regime in the light of the experiences of the last one year, they said.
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".
India will soon become a favourite destination for foreign investors and will be able to double the foreign direct investment that presently stood at about $4.4 billion, according to one of the architects of the country's financial policies.
SSTL is the second operator after Vodafone that has approached FIPB for raising FDI limit.
The note recommends allowing FDI in domestic firms through the issue of partly-paid up shares and convertible warrants, but with certain riders.
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.
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 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.
Startup founders need to sit up and think about how not to take stardom for granted and how not to disappoint their fans who have stood in long queues for those precious selfies with popular entrepreneurs, notes Nivedita Mookerji.
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.
Finance Minister Pranab Mukherjee on Friday said the government is considering further liberalisation of the country's foreign direct investment policy for attracting investment in the infrastructure sector.
The healthcare industry on Friday asked the government to revamp the foreign direct investment and capital adequacy norms for health insurance entities to make world-class medical treatment available to Indians and make the country a healthcare hub i
India's commerce and industry minister Anand Sharma said that from 2012 the country would be able to attract 50 billion dollars annually.
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.
India has emerged as one of the most favourable destinations of European and American investors among the Asian nations.
In its latest lobbying disclosure report filed with the US Senate and the House of Representatives for the quarter ended March 31, 2013, the various lobbying issues of Walmart during the period included 'discussions related to FDI (Foreign Direct Investment) in India'.
FDI inflows in the manufacturing sector rose by almost 45 per cent between October last year and this February.
Total outflow and inflow of foreign investment in general for 2014-15 fiscal was $6.42 bn and $75.71 bn, respectively
Also the companies should be self-sufficient in product designing and have maintenance and life cycle support facilities.
The government on Wednesday said foreign direct investment in retail will not be allowed if it hurts small retailers.
Undeterred by global credit freeze, India maintains a bullish outlook on attracting foreign direct investment which may be governed by easier rules, a top government official said.
The increase in FDI limit in the insurance sector may attract Rs 30,000 crore that the industry requires over the next five years, Insurance Regulatory and Development Authority has said.
Reflecting slowdown in the economy and erosion of investor confidence, foreign direct investment (FDI) in India has declined by 41 per cent to USD 1.85 billion in April.
Anand Sharma, who took charge of the nodal ministry for FDI on May 29, said there is no need for a relook at the policy amended in February by the Department of Industrial Policy and Promotion. While the policy does not allow overseas inflow into this sector, the changes in February were perceived to be opening the sector to FDI up to 49 per cent in an Indian firm that has a downstream subsidiary firm in retailing.
For the first time in three years, 2004-05 saw an increase in foreign direct investment into India touching $5.5 billion, while FDI made by Indian companies doubled to $2.5 billion during the last fiscal, FICCI has said.\n\n
While the cumulative FDI inflows of $25.35 billion for April-February 2008-09 were higher than the $20.13 billion a year ago, the country has been witnessing a steep fall in foreign investments since October 2008, according to official figures. In February 2008, the foreign investment was $5.67 billion.
At present, global retail firms can invest up to 51 per cent in India and need a local joint venture partner.
The inflow in December 2008 is lower compared to $1.55 billion FDI the country received in the same month in the previous fiscal. The country has set a target of $35 billion for FDI in the current fiscal.
"In the next five years, we are aiming to have $ 250 billion FDI coming into India," Commerce and Industry Minister Anand Sharma said at a CII function in New Delhi.
The government has cleared 19 foreign investment proposals, including that of Walt Disney Company and Reckitt Benckiser (India), entailing total investment of Rs 2,326.72 crore (Rs 23.26 billion).
The Department of Industrial Policy and Promotion in the Commerce Ministry proposes to scale back the Foreign Direct Investment ceiling for the tobacco industry from 100 to 74 per cent and insert a caveat that cigarettes manufactured in the new ventures or in upgraded facilities must be mainly for consumption outside India.Sources said the department, which is responsible for the policy on FDI, is finalising a cabinet note aimed at comprehensive review of the tobacco policy.
The Union government indicated on Thursday that it might welcome foreign direct investment in the field of higher education and formulate a policy on it.
