Upto DIPP to take FDI reform process forward: Mayaram

A panel led by DEA secretary Arvind Mayaram submitted its report on reviewing FDI sectoral caps to the finance minister today. It has recommended keeping the minimum FDI cap across sectors at 49 percent, so the FDI limit in sectors with a 26 percent cap will be hiked to 49 percent. Furthermore, the panel also recommends hiking the FDI limit in sectors with a 74 percent cap to 100 percent.

The relevant ministers will meet on first or second July to take up the proposal, after submitting the recommendations to the finance minister, DEA secretary Arvind Mayaram said it was now upto the DIPP to take the process forward. Also read: FDI cap hike in key sectors likely to boost investment mood Below is an edited excerpt of Mayaram's exclusive interview on CNBC-TV18. Q: Do you expect FDI flows to now get a fillip if India does succeed in liberalising the caps, which experts and economists say, is a very good idea at this point in time? A: Liberalisation in FDI policy has been stated by Finance Minister by the Minister of Commerce and Industries and there is a general awareness that FDI policy should be liberalised and we certainly need more FDI and I hope in this year we get more FDI. Q: We are just one month away from the monsoon session and then this is followed by lot of state elections, when you embark on the reform such as FDI, do you think you have a very small window of opportunity to actually go ahead with it? A: As I said in the past, as far as executive policy decisions are concerned I don't think they get in any way circumscribed by the circumstances that you are speaking about. But in what manner they will go forward and to what extent? I am not the right person to answer that question, that question should be answered by the Department of Industrial Policy and Promotion (DIPP) and they will answer this question.