India has received nearly Rs 30,000 crore worth of FDI in the private sector insurance firms since 2015, when the government increased FDI limit from 26 per cent to 49 per cent.
In an exclusive conversation with CNBC-TV18's Shereen Bhan, DIPP Secretary Amitabh Kant spoke on the government‘s decision to liberalise foreign direct investment policy in various sectors.
This comes as a major positive for Indian companies as India currently imports over 70 percent of medical devices.
Domestic firms had raised USD 1.93 billion the overseas market in the same month a year ago. Of the total borrowings during the month, USD 69.43 million was raised through the approval route, while USD 2.71 billion came through the automatic route.
The Commerce and Industry Ministry has circulated a draft Cabinet note for inter-ministerial comments on liberalising foreign direct investment (FDI) policy in medical devices.
The FDI liberalisation in the sector would help in modernisation and expansion of railway projects. However, FDI will not be allowed in train operations and safety. Earlier, FDI was allowed only in Mass Rapid Transport (MRT) systems.
Market experts say, in a reaction to CNBC-TV18, that the RBI measures signal the central tightening the noose on the rupee depreciation and that there will be little impact on the USD when it opens on Friday.
Telecom stocks surged on the back of the FDI announcement. But it fell later almost to 4.3 percent as investors booked profits and washed out all gains.
The government today allowed 100 percent foreign direct investment (FDI) in telecom sector; a key demand of the industry.there is raising of cap from 74 to 100 percent in basic and cellular services. Upto 49 percent remains under automatic route and 49-100 percent through FIPB route, commerce minister Anand Sharma said in a press conference.
The RBI today allowed companies which are under investigation by agencies like the enforcement directorate to apply for foreign loans under the "automatic route".
Govt cautious in allowing FDI in LLPs: Experts