The Union Cabinet, in a landmark move for Indian retail, announced some noteworthy changes in norms pertaining to single-brand foreign direct investments (FDI) in India, thereby making it considerably easier for global retailers to gain access to the highly dynamic and fast-growing Indian markets
The former Union finance minister accused the government of not fulfilling the promises made to farmers in the BJP manifesto in 2014.
"The (Narendra) Modi government had already decided to push Air India for wholesale privatisation. And to expedite such privatisation move, the government has now made this announcement of permitting 49 per cent FDI.
Tax and audit major Deloitte said that investors in the retail sector will "refresh" their India investment plans.
Foreign players in single brand retail trade will now be able to set up own shops in India without government approval.
The Confederation of All India Traders (CAIT) said the move will facilitate easy entry of MNCs (multi-national companies) in the retail trade.
"The prime minister today said fresh investment in the country has been the highest. This seems an incomplete truth...it would have been better had he told (the PIOs) that investment (made in the country) has been the lowest in last 13 years," Babbar told reporters.
The relaxation of policy is aimed at providing investor friendly climate to foreign players and in turn attract more FDI to boost economic growth and create jobs.
"The liberalised FDI has opened many sectors in the country and given a boost to the inflow of investments," Yusuff Ali MA, the chairman and managing director of the Abu Dhabi-based LuLu Group International, said here yesterday.
Cumulative FDI into India reached USD 498.9 billion in 17 years from April, 2000 to June, 2017, according to the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.
FDI rose 17.3 percent to 70.63 billion yuan ($10.73 billion) in September from a year earlier, compared with a 9.1 percent gain in August, marking its biggest percentage gain since August 2015.
The textile minister asserted that the country's man-made fibre sector can soon look forward to "good news" as an inter- ministerial group (IMG)has been formed to suggest measures to maximise its potential. However, she did not elaborate on the details.
India's Secretary of Defence Production, Ashok Gupta, outlined the criteria by which US original equipment manufacturers (OEMs) can participate in the Indian defence market.
The state attracted more than half of the total foreign direct investment (FDI) in the country last fiscal, Fadnavis said at an industry event.
Fadnavis said opportunities exist in the state for businesses across all sectors, and pointed out upcoming areas under the Smart City initiative which can be of interest to power, grid and housing industries.
The overseas investment by Indian companies in August last year ago stood at USD 1.57 billion.
Noting that USD 2 billion fund outflows by foreign portfolio investors (FPIs) is only a temporary phenomenon, James said "with the US rate hike roadmap becoming less clear, and with no major FDI destinations emerging, India should remain a favourite among global investors".
Dyson International got an approval to carry out single brand retail trading of 'Dyson' branded products in India, it said in a statement. The investment envisaged in the range of 5 million to 10 million British pounds.
Xerox India had submitted a proposal for wholesale trading of xerographic equipment, document processing products and global document outsourcing business.
"An e-commerce entity will not permit more than 25% of the sales value on financial year basis affected through its marketplace from one vendor or their group companies," the Department of Industrial Policy and Promotion (DIPP) said in its consolidated FDI policy circular, released here.
Start-ups can issue equity or equity linked instruments or debt instruments to FVCI against receipt of foreign remittance, said the document which incorporates all the changes made in FDI policy over the past year.
The Department of Industrial Policy and Promotion (DIPP) said the new "circular will take effect" from today.
Finance Minister Arun Jaitley who also holds the Defence Ministry’s portfolio held a meeting with government officials recently and took stock of the current FDI policy
Bankers to Essar Oil will get Rs 4,000 crore from Rosneft deal of Rs 82,740 crore (USD 12.9 billion) which will reduce Essar’s Group debt by Rs 70,000 crore
The report said while supply side has undergone a structural change, reform momentum is well above its historic past and more aggressive than emerging as well as global peers.