Despite the uncertain economic environment globally, FDI in India surged 50 per cent to USD 20.76 billion from January-August, according to the industry ministry's latest data.
RBI feels allowing foreign companies into this business may affect financial stability.
The Department of Industrial Policy and Promotion under the commerce ministry has floated a draft Cabinet note for inter-ministerial discussions on foreign direct investment in aviation.
The oil companies raised petrol prices by Rs 7.50 on Wednesday, a tough but unpopular decision which many see as a strong signal from the government that it's now stepping on the reform pedal.
Currently, FDI up to 26 per cent is permitted through automatic approval route.
In 2011-12, FDI rose 34.4 per cent to $46.84 billion, compared with $34.84 billion in 2010-11 and $37.74 billion in 2009-10, according to data from the Department of Industrial Policy and Promotion.
The Department of Industrial Policy & Promotion and Planning Commission member Arun Maira are sticking to their guns on foreign direct investment in the pharmaceutical sector.
The company said it has no plans to shift the $12 billion steel project from Orissa.
Even as the Centre is working overtime to roll out FDI in retail while the real decision might rest with the states, Arvind Singhal, chairman, Technopak Advisors, often referred to as the poster boy of the Indian retail sector, said the so-called big-ticket measure was "not the most important thing"for the sector.
Nike has been present in India since 1996.
Various corporate bodies from US and UK had cautioned that such tax proposals could dent India's image as an investment hotspot.
Foreign direct investment (FDI) in India's aviation sector is long overdue; the Cabinet should back Mr Singh's decision -- which was taken following a meeting with Finance Minister Pranab Mukherjee, Petroleum Minister Jaipal Reddy and Commerce Minister Anand Sharma.
FDI cap may remain intact at 26% as Cabinet takes up legislation this week.
A panel led by the secretaries of the DEA and the DIPP would conduct a quarterly review on the pending proposals.
Clause on 30% sourcing from Indian SMEs a particular concern.
Representatives from four states including Maharashtra and Karnataka will also be members of the panel.
A group of ministers will soon meet in New Delhi to decide on allowing foreign entities to pick up stakes in the airline sector in India, Civil Aviation Minister Ajit Singh said on Wednesday.
Sector to see funding push; tax reforms as well as sops to wait longer.
India's economy has bounced back amazingly from the Covid-19 pandemic and nationwide lockdown over the last one year, but it is not out of the woods yet, according to the World Bank, which in its latest report has predicted that the country's real GDP growth for fiscal year 21/22 could range from 7.5 to 12.5 per cent.
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.
The chief minister said that he had received Sharma's letter regarding the union cabinet's decision for liberalisation of the Foreign Direct investment policy in multi brand retail.
Corporate America does not believe that the United States-India relationship has been oversold, but that it's certainly over-hyped. However, it is more concerned over New Delhi's recent actions such as retroactive taxes and predicts all of this will lead to foreign direct investment drying up at a time when India needs it more than ever.
Industry experts say that the government needs to further relax FDI norms to attract investors to the sector.
Ron Somers, president of United States-India Business Council, has termed the Indian government's rollback of foreign direct investment in the multibrand retail sector as yet another addition to the disappointments American business and industry has had to endure.
The approval will, however, be subject to the regular conditions on valuation and pricing norms laid down by the Reserve Bank of India.
The pandemic has brutally highlighted the inadequacy of India's administrative systems. And, the government has demonstrated its culpable inability to speed up vaccination in a timely manner, says Jaimini Bhagwati.
Opposition to FDI in retail is misguided, says Pranab Bardhan, professor of economics in University of California, Berkeley.
In the first seven months of 2011-12, the Centre's fiscal deficit has crossed 74 per cent of the year's target. Inflation has been over 9 per cent for a year, despite food inflation falling considerably.
USIBC President slams India for suspending its decision to open the multi-brand retail sector to foreign direct investment.
Investors engaged in profit booking in the recent gainers at attractive and higher valuations.
'An economic slowdown affects a country's ability to modernise its defence capabilities as rapidly as possible.'
Embargo on imports from a neighbouring country would send a chilling signal to foreign investors who look for transparency and companies with manufacturing units in India had requested the government to publish any change in port policy "to provide the business community with the visibility they need to function", says United States-India Strategic Partnership Forum.
Targeting the political class, Team Anna member Arvind Kejriwal on Sunday accused the Bharatiya Janata Party and the Congress of misusing the Central Bureau of Investigation while in power. He also took on Trinamool chief Mamata Banerjee for not being vocal about Lokpal like she was on the issue of Foreign Direct Investment in retail.
Crucial financial sector reforms are again stuck, despite Finance Minister Pranab Mukherjee's appealing to political parties to help pass the legislations in this regard.
Prime Minister Manmohan Singh will probably want to forget the year 2011 as soon as possible. The recent hold back of the Cabinet decision to allow 51 per cent foreign direct investment in retail trade was just another humiliation that plagued his government, which still finds itself cornered by a plethora of allegations of scams, administrative excesses and outstanding misgovernance.
"It is a highly regressive move. For the growth of this vital sector of the economy, which is likely to result in strong linkages with the farm sector and for the economy as a whole, it is imperative that reforms like these should take place," FICCI President Harsh Mariwala said.
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.
CPI-M general secretary Prakash Karat also reminded the government that it should not think of bringing back FDI in retail sector after the winter session of Parliament and his party will unite with other forces to oppose any such move.
The Union Cabinet in its decision of November 24, which has since been put on hold, permitted 51 per cent FDI in the multi-brand retail, well above expectations of the Walmart and its Indian joint venture partner -- Bharti Group.
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