FDI in non-food retail unlikely before 2019 Lok Sabha elections

Source: LiveMint.com, Nov 20, 2017

New Delhi: Wary of the potential electoral fallout of breaching its promise not to permit foreign direct investment (FDI) in multi-brand retail, the National Democratic Alliance (NDA) government has decided not to allow foreign supermarket chains to sell non-food items during its current tenure, which ends in 2019.“Allowing foreign retailers to sell non-food items in India is unlikely to happen before the next general election,” a senior government official involved in the FDI decision-making process said on condition of anonymity.

The Union cabinet in June 2016 allowed 100% FDI in trading, including through e-commerce, of food products manufactured or produced in India.

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Finmin clears 2 FDI proposals worth Rs 24.56 cr

Source: The Economic Times, Nov. 02, 2017

The finance ministry today said it cleared two foreign direct investment (FDI) proposals of Rs 24.56 crore in October.

The proposals included that of Sterling Commerce Solutions India which sought approval for issue of shares to the shareholders of three wholly-owned subsidiaries of IBM India Pvt Ltd upon their merger with the applicant, Finance Ministry said in a statement issued today. Read the rest of this entry »

$83.5 billion and counting: How Invest India keeps FDI rolling in

Source: The Hindu Business Line, Oct 27, 2017

Chennai: On October 10, Invest India, the foreign investment promotion arm of the government, crossed a milestone: it received the 100,000th investment-related query, from a Japanese auto-components company, which isconsidering investing in India.

Foreign direct investment commitments – as opposed to “intentions” – worth $83.5 billion have come through the facilitator; and 90 per cent of it came in the past 15 months.

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Food processing, retail will get $10 billion in FDI: Harsimrat Kaur Badal

Source: The Economic Times, Oct 25, 2017

NEW DELHI: Union minister for food processing industries Harsimrat Kaur Badal said the government is still considering the inclusion of 25% home care and personal care products in multi-brand food retail outlets owned by foreign companies. She said global companies have committed a $10 billion investment in food processing, technology, cold chain and retail in the next two years in the run-up to the World Food India event, a mega show of the Indian government scheduled for November 3-5 to attract foreign investment and create 1million jobs.

Badal said foreign companies such as Metro, Mountain Trail and Amazon, among others, have committed investment in food retail and that 100% foreign direct investment (FDI) in multi-brand retail of nonfood items was never under consideration.

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DIPP approves 3 FDI proposals for single brand retail

Source: IBEF.org, Oct. 20, 2017

New Delhi: Three foreign direct investment (FDI) proposals, including that of Mountain Trail Foods and Kohler India Corporation, were approved by the department of industrial policy and promotion (DIPP) in the single brand retail sector.

Mountain Trail Foods would undertake retail trading of food products including tea and beverages, according to the DIPP’s Foreign Investment Facilitation portal.

The company had proposed to invest USD 10 million.

Kohler India Corporation will carry out single brand retailing of ‘Kohler’ branded products in India.

Similarly, Merlin Entertainments India got approval to undertake retailing under the brand ‘Madame Tussauds’. It plans to invest Rs 1 crore.

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

FDI into the country had grown 9 per cent to USD 43.47 billion in 2016-17.

DIPP eases mechanism for processing FDI proposals

Source: IBEF.org, Oct. 18, 2017

New Delhi: The commerce and industry ministry has eased the mechanism for processing foreign direct investment (FDI) proposals by doing away with the requirement of sending the applications to the department of revenue.

Amending a provision in the standard operating procedure for processing of FDI proposals, the Department of Industrial Policy and Promotion (DIPP) today said that marking of proposals to the revenue department for their comments has been “discontinued” with immediate effect.

The move is aimed at further promoting ease of doing business in the country to attract overseas inflows.

Earlier all proposals were forwarded to the ministry of external affairs and the department of revenue for information.

After the abolition of Foreign Investment Promotion Board (FIPB), the government came out with standard operating procedure in June.

Under this, the government would clear all foreign direct investment proposals requiring approval within a maximum of 10 weeks after the receipt of an application.

FDI into India increased by 9 per cent to USD 43.48 billion in 2016-17.

India Ports’ proposal among 4 FDI plans approved

Source: The Hindu Business Line, Oct 10, 2017

New Delhi: The Department of Economic Affairs has approved four foreign direct investment proposals in September worth INR 85.45 crore.

The approvals include a proposal by India Ports & Logistics Pvt Ltd for acquisition of additional stake of up to 70.40 per cent of India Ports & Logistics Private Ltd by Bollore Africa Logistics SAS involving an investment of INR 75.35 crore, according to an official release.

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