The mood in the government seems to have hardened and they do not seem to be in a mood to budge on the issue. Prime Minister Mamhohan Singh indicated as much during his speech at a Youth Congress meet in the capital on Tuesday.
FDI in real estate will now be through the automatic route and not through the Foreign Investment Promotion Board.
A Parliamentary panel that went into a Bill to create a pension fund regulator has favoured 26 per cent FDI in the sector, but found many lacunae in the legislation.
Japan on Tuesday said the labour unrest at Honda Motorcycles and Scooters India could impact foreign direct investment inflows into India, but ruled out its intervention in the matter.
Accusing the opposition of spreading misinformation regarding policy initiatives taken by the United Progressive Alliance government, a combative Prime Minister Manmohan Singh on Sunday said reform measures, including FDI in retail, will benefit the common man and create more jobs.
Why the Union Cabinet was so impatient to allow FDI in multi-brand retail flummoxed many.
The real estate industry is divided over the impact of the proposed foreign direct investment (FDI) in multi-brand retail.
India can become a $6.7 trillion economy by 2031, from $3.4 trillion currently, if the country clocks an average growth of 6.7 per cent for 7 years, an S&P Global report said on Thursday. India had clocked a 7.2 per cent GDP growth in 2022-23 fiscal. But a global slowdown and lagged effect of a policy rate hike by RBI could slow down growth to 6 per cent in the current fiscal, S&P Global said in a report titled 'Look Forward: India's Money'.
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China approved 9,582 new foreign-funded companies in first 5 months.
The government is likely to allow FDI in high speed trains and other projects.
Finance Minister Nirmala Sitharaman on Thursday announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government's last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups.
The government on Friday approved 32 foreign direct investment proposals worth Rs 181.16 crore (Rs 1.81 billion).
Observing that India has a low foodgrain productivity and inefficient distribution, he said increasing the scale of investments in organised retail is one way to increase productivity and distribution efficiency.
Says allow companies with up to 49% FDI to invest in restricted sectors.
As Parliament on Tuesday began discussing Foreign Direct Investment in retail under a rule entailing voting, the Congress did not hide its displeasure over the "unhealthy precedent" that an executive decision has been put up for legislative vote.
The FDI announcements made by the government in multi-brand retail, single-brand retail, aviation sector and broadcast sector are expected to change the landscape of the respective industry.
Fissures in the opposition over Foreign Direct Investment in retail came to government's aid Thursday as the opening day of Parliament's winter session was washed out and Trinamool Congress' move for a no-confidence motion flopped.
A proposal to permit foreign airlines to pick up stake in domestic carriers is among the several measures being considered by the government to help the Indian aviation industry overcome the financial crunch.
Steel Minister Beni Prasad Verma has been in news for his statement "inflation helps farmers". He talks about why he stands by his statement and how FDI in retail would set right prices for both agriculturalists and consumers.
Ten states and Union Territories had endorsed FDI in the sector by August 13.
The two major railway unions have proposed to the government an unprecedented alternative to privatisation or inviting foreign investment, to help raise funds and improve revenue.
Ministry officials said the matter is being reviewed with the objective of bringing down the FDI cap from 100 per cent to 26 per cent in line with the limit for news media. This decision for the review was taken while discussing the proposal of US-based Dow Jones and Company for setting up a wholly-owned subsidiary to carry out publishing the facsimile edition of Wall Street Journal in India.
The apex court asked Reserve Bank of India to amend Foreign Exchange Management Act regulations within two weeks to allow implementation of FDI in retail sector.
Most investments by Indian corporate houses in the overseas market is through countries that have either low tax rates or allow tax-free remittance of income. Much of the outward foreign direct investment (FDI) by India Inc done between April and December 2007 was directed to Singapore, the Netherlands and British Virgin Islands (BVI), according to the latest Reserve Bank of India data. RBI said the actual outward FDI in April-December 2007 grew 13 per cent at $10.11 billion.
A Planning Commission panel has suggested allowing foreign investors to own a larger share in domestic insurance companies. The group, chaired by Planning Commission member Anwarul Hoda, has also said that foreign direct investment restrictions on reinsurance companies should be removed.
The government looks all set to open up the retail sector beginning with food and a proposal in this regard is expected to go before the Cabinet by next month.
The flow of foreign direct investment into China, dubbed as the world's factory, continued its slight decline in the first eight months this year.
Although UPA government has somehow managed to scuttle Opposition's stiff antagonism to FDI in multi-brand retail in both the Houses of the Parliament, it has certainly opened itself to the charge of being a minority government, analyses Renu Mittal.
Apprehending that the Samajwadi Party and the BGahujan Samaj Party would bail out the United Progressive Alliane on FDI in retail, the opposition in Lok Sabha on Wednesday warned these parties as also Dravida Munetra Kazhagam that history will not pardon them if they sided with the government on the issue despite opposing it during the nationwide protest.
