DIPP notifies foreign direct investment relaxation in several sectors

3Source: Business Standard, Jan 24, 2018

New Delhi: The Department of Industrial Policy and Promotion (DIPP) on Wednesday notified easing of FDI rules for several sectors, including single-brand retail and construction.On January 10, in big bang reforms ahead of the BJP government’s last full Budget, the Union Cabinet had allowed 100 per cent foreign direct investment (FDI) in single-brand retail and construction development under the automatic route.

Besides, foreign airlines were also allowed to buy up to 49 per cent stake in Air India.

In its press note, the DIPP said allowing 100 per cent FDI in single-brand retail under the automatic route is aimed at attracting investments in production, marketing, improving the availability of products to consumers and encourage increased sourcing from India.

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India ending curbs will benefit 10 foreign retailers

1.jpgSource: The Economic Times, Jan 25, 2018

India will witness about 10 foreign single-brand retailers starting operations after Prime Minister Narendra Modi removed the need for a federal approval, a senior minister said.

The companies which have sought government permission to set up single-brand establishments include Fast Retailing Co., operator of Japanese casual-wear brand Uniqlo. It had submitted an application in November last year. Tesla Inc. is also in talks with the government to enter India through the single-brand retail route, The Times of India reported last year.

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Mauritius largest source of FDI in India, says RBI

Source: The Economic Times, Jan 19, 2018

MUMBAI: Mauritius was the largest source of foreign investment in India, followed by the US and the UK, according to a census by the Reserve Bank.

Singapore and Japan were the next two sources of foreign direct investment (FDI), said the Census on Foreign Liabilities and Assets of Indian Direct Investment Companies 2016-17, released by RBI today.

Of the 18,667 companies that participated in the census, 17,020 had FDI/overseas direct investment in their balance sheets in March 2017, it said. Read the rest of this entry »

FDI push likely to give further boost to Rupee

Source: ETRetail.com, Jan 12, 2018

MUMBAI: The Indian rupee, which climbed 6 per cent last year amid record fund flows from overseas, is set to appreciate further against the dollar this year, with traders expecting foreign direct investments (FDIs) to accelerate after New Delhi eased ownership rules in industries as diverse and capital-intensive as retail, civil aviation, and realty.

“The relaxed rules will give an additional push to the rupee, which is likely to gain this year,” said Anaindya Banerjee, currency analyst at Kotak Securities. “Although the rupee is underperforming other emerging markets at the beginning of this year, it is expected to gather strength after the Budget. Rising FDI inflows will also cushion the local unit in case global risk-aversion triggers capital outflows from financial assets in emerging markets.”
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‘Liberalised FDI makes India hot biz spot for NRI investors’

Source: LiveMint.com, Jan 09, 2018

India’s liberalised foreign direct investment policy, especially regarding the participation of Non-Resident Indians in its economy as domestic investors, has made the country a hot destination among NRIs, according to a leading Indian businessman in the UAE.

“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.He made the remarks on the sidelines of the ASEAN-India Pravasi Bharatiya Divas 2018 held in Singapore on 6 and 7 January.

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DIPP approves two FDI proposals in retail sector

Source: Business Standard, Dec 26, 2017

Two foreign direct investment (FDI) proposals, including that of Damro Furniture worth over Rs 400 crore were approved by the department of industrial policy and promotion (DIPP) in the retail sector.

Damro Furniture would undertake single brand retail trading of ‘Damro’ branded products in India, according to the DIPP’s Foreign Investment Facilitation portal.

The company had proposed to invest Rs 402 crore.

Supr Infotech Solutions will carry out food product retail trading of milk and other daily need products. The firm proposes to invest Rs 10.85 crore.

The portal was set up after the winding up of the foreign investment promotion board.

FDI into the country grew 17 per cent to $25.35 billion during April-September this fiscal.

Government may allow 100 per cent FDI in telecom via automatic route

Source: The Economic Times, Dec 21, 2017

NEW DELHI: The government is finalising a plan to allow 100 per cent FDI for telecom services through the automatic route which allows firms to attract foreign funds without its approval, sources said today.

The proposal is likely to be considered by the Telecom Commission, the apex decision making body of the Department of Telecom, at its meeting scheduled for tomorrow, they said.

“The TC is likely to consider raising of FDI limit up to 100 per cent for all telecom services including infrastructure through automatic route,” a source said. Read the rest of this entry »