Government eases FDI norms in 15 major sectors
To boost investment environment and attract more foreign investment in the country, the government on Tuesday brought in a set of reforms related to FDI in 15 major sectors, including defence, manufacturing and e-commerce. “The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors is wasted,” the Ministry of Commerce said in a statement. As per the revised FDI policy in the Defence sector, foreign investment above 49% will be allowed subject to approval of the Cabinet Committee on Security (CCS) on case to case basis. With respect to portfolio investment and investment by FVCIs, the government has brought in several changes, allowing foreign investment up to 49% under automatic route. Besides, proposals for foreign investment in excess of 49% will be considered by Foreign Investment Promotion Board (FIPB). The government has also relaxed foreign investment norms in real estate sector. “Opening up the manufacturing sector for wholesale, retail and e-commerce so that the industries are motivated to make in India and sell it to the customers here instead of importing from other countries,” the ministry said in a press note. The proposed reforms also enhance the limit of Foreign Investment Promotion Board (FIPB) from current Rs. 3,000 crore to Rs.5,000 crore. The proposal also contains many other long pending corrections including those being felt by the limited liability partnerships as well as NRI-owned companies. With regard to manufacturing sector, “It has been decided that a manufacturer will be permitted to sell its product through wholesale and/or retail, including through e-commerce without Government approval.” On the single brand retail, the policy has been amended to allow those units which have been granted permission to undertake SBRT (Single Brand Retail Trade) to undertake e-commerce activities too.
November 10, 2015 | 6:15pm IST.
to success.