January 18, 2021
These reforms have led to total FDI into India
At USD 64. Similarly, 49 per cent is permitted in broadcasting content services
through government approval route.In single-brand retail trading (SBRT), the
definition of 30 per cent local sourcing norm has been relaxed and online sales
permitted without prior opening of brick and mortar stores. The government has
put in place an investor-friendly policy on FDI, under which investment up to
100 per cent is permitted on the automatic route in most sectors/ activities.New
Delhi: In a fresh round of FDI reforms, the government on Wednesday allowed 100
per cent foreign investment in coal mining and contract manufacturing, eased
sourcing norms for single-brand retailers and approved 26 per cent overseas
investment in digital media as it looks to boost economic growth from a
five-year low.But, the decision is subject to provisions of Coal Mines (special
provisions) Act, 2015 and the Mines and Minerals (development and regulation)
Act, 1957.FDI is a major driver of economic growth and a source of non-debt
finance for the economic development of the country.
In order to provide clarity
on contract manufacturing, it has been decided to allow 100 per cent FDI under
automatic route in contract manufacturing as well," the statement said.Goyal
said decisions of the Cabinet on Wednesday are aimed to "liberalize and simplify
the FDI policy to provide ease of doing Cotton Canvas
Suppliers business in the country, leading to larger FDI inflows and thereby
contributing to the growth of investment, income and employment".On Friday,
Sitharaman had announced tax incentives and some reforms for various sectors in
an effort to stimulate slowing economic growth.In the coal sector, now foreign
players can invest 100 per cent for mining and sale of coal under automatic
route.After rapidly expanding in last couple of years, Indias economic growth
momentum has been slipping since the last 3-4 quarters.Further, the government
permitted 26 per cent overseas investments through government approval route for
uploading/ streaming of news and current affairs through digital media, on the
lines of print media.In the print media sector, 26 per cent FDI is allowed
through government approval route.. They will also be able to carry out other
associated processing infrastructure related to the sector such as coal washery,
crushing, coal handling, and separation (magnetic and non-magnetic).
These
reforms have led to total FDI into India reaching USD 286 billion in five years
from 2014-15 to 2018-19 as compared to USD 189 billion in the previous 5-years,
he said.To pull out the economy from the current slump, the finance minister
provided tax relief for foreign portfolio investors (FPIs) and startups coupled
with targeted steps for the automobile sector and upfront support of Rs 70,000
crore to public sector banks aim to revive demand conditions."The changes in FDI
policy will result in making India a more attractive FDI destination, leading to
benefits of increased investments, employment, and growth," Commerce Minister
Piyush Goyal told a media briefing after the meeting of the Union Cabinet.In the
current policy, 100 per cent FDI is allowed under automatic route in
manufacturing sector but it was silent on contract manufacturing.Goyal said that
100 per cent FDI in coal mining would help attract international players to
create an efficient and competitive coal market. Clarity around this fast
growing segment of the media industry will act as an enabler for capital
infusion.As per the present FDI policy, 100 per cent overseas investments under
automatic route was allowed for coal and lignite mining for captive consumption
by power projects, iron and steel and cement units only.37 billion, FDI in
2018-19 is the highest ever investment received for any financial year."Online
sales will lead to the creation of jobs in logistics, digital payments, customer
care, training and product skilling," he added. Not only did GDP growth fall to
a 20-quarter low of 5.The government also clarified that 100 per cent FDI is
permitted for contract manufacturing.The present FDI policy is silent on the
fast-growing digital media segment."FDI in digital media is a welcome
development."Further, 100 per cent FDI under automatic route is also permitted
for setting up coal processing plants like washeries subject to the condition
that the company shall not do coal mining and shall not sell washed coal or
sized coal from its coal processing plants in the open market and shall supply
the washed or sized coal to those parties who are supplying raw coal to coal
processing plants for washing or sizing," an official statement said.Coming
within a week of Finance Minister Nirmala Sitharaman unveiling a raft of
measures to boost growth, the Union Cabinet headed by Prime Minister Narendra
Modi liberalised foreign direct investment (FDI) rules in the four sectors.8 per
cent in January-March, telltale signs of distress are visible in sectors like
NBFCs, automobile, real estate, and FMCG. Significant value will be unlocked
going forward," Deloitte Partner Jehil Thakkar said
Posted by: selfflk at
05:49 AM
| No Comments
| Add Comment
Post contains 809 words, total size 5 kb.
<< Page 1 of 1 >>
11kb generated in CPU 0.0064, elapsed 0.0258 seconds.
30 queries taking 0.0206 seconds, 41 records returned.
Powered by Minx 1.1.6c-pink.
30 queries taking 0.0206 seconds, 41 records returned.
Powered by Minx 1.1.6c-pink.