E-commerce policy to have new FDI norms

Source: ETRetail.com, Feb 04, 2019

The Department for Promotion of Industry and Internal Trade (DPIIT) will hold a meeting with stakeholders including those companies and groups that were opposed to the tighter FDI guidelines, which became effective February 1, before finalising the policy. The government had turned down demands for an extension of the deadline.

“We will have a stakeholder meeting soon where FDI issues would be discussed. However, we are not sure if a separate regulator will be set up for ecommerce,” said a senior official. Read the rest of this entry »

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FDI grew 18% in FY18 to Rs 28.25 lakh crore: RBI data

Source: The Economic Times, Jan 28, 2019

Mumbai: Foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore, data from the Reserve Bank of India (RBI) showed Monday. FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value, according to RBI data on ‘Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2017-18’.

The RBI said as many as 23,065 companies responded to the latest round of the census, of which, 20,732 firms had FDI or ODI in their balance sheet in March 2018.

Overseas direct investment (ODI) by Indian companies increased by 5 per cent to Rs 5.28 lakh crore.

“FDI companies witnessed a substantial increase in other investment liabilities, largely due to the increase in trade credit,” the RBI said.

The census showed that Mauritius continued to be the largest source of FDI in India (19.7 per cent) followed by the US, the UK, Singapore and Japan.

In case of overseas investment by Indian companies, Singapore (17.5 per cent) was the major destination, followed by the Netherlands, Mauritius and the US.

Manufacturing sector had majority share in total FDI. ‘Information and communication services’ and ‘financial and insurance activities’ were other major recipients of FDI.

The RBI said the data released are the provisional results of 2017-18.

In the census participating companies, 15,104 were common from the previous census round and 5,628 reported for the first time. Besides, 1,916 companies that reported in the previous round did not report in the latest round.

At the aggregate level, foreign equity participation was very high as 84 per cent of the companies that reported inward FDI were subsidiaries of foreign companies (i.e., single foreign investor holding more than 50 per cent of total equity), RBI said.

Amazon, Flipkart seek more time to comply with new FDI policy

Source: The Economic Times, Jan 16, 2019

NEW DELHI: Amazon and Walmart-owned Flipkart have asked the government to extend the February 1 deadline to comply with recently announced changes in the foreign direct investment (FDI) policy for ecommerce, according to people with knowledge of the matter. Flipkart confirmed this in an email.

“We are working diligently to assess all aspects of the Flipkart business in an effort to ensure full compliance with the new rules, but believe an extension is appropriate in order to ensure that all elements of the new Press Note are clarified and a smooth transition for marketplace participants occurs without any disruption for customers and small sellers,” a spokesperson told ET. Read the rest of this entry »

Strong case to revisit ‘restrictive’ FDI retail policy: ICRA

Source: The Hindu Business Line, Jan 14, 2019

Domestic ratings agency Icra has said there is a “compelling case” to revisit the “restrictive” retail foreign direct investment (FDI) policy as India has not been able to get sizeable investments despite opportunities.

Citing examples of other emerging geographies to allay concerns, the agency said organised and unorganised retail can co-exist.

The multi-brand retail sector remains “most restrictive” to FDI, with a cap of 51 per cent ownership and guidelines relating to mandatory investments in back-end infrastructure and local sourcing norms, it said. “There is a compelling case for the government to revisit its FDI policy. The investment requirements of the sector are sizeable,” its Vice President and Co-Head for Corporate Sector Ratings Kinjal Shah said. Read the rest of this entry »

Govt does U-turn in policy, says e-commerce firms can sell private labels

Source: Business Standard, Jan 04, 2019

New Delhi: An aggressive push by e-commerce majors over New Year weekend to force the government into a parley seems to have paid off, with the latter on Thursday clarifying there are no restrictions on private labels being sold by e-marketplaces.

The sharp reversal of policy by the Department of Industrial Policy & Promotion (DIPP) comes barely a week after the government had explicitly restricted such sales and is the latest development in an intense ongoing debate on e-commerce rules.

“An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity,” DIPP’s press note 2 (2018) said last week. Read the rest of this entry »

FDI in non-conventional energy sector touches $ 3.2 b

Source: The Hindu Business Line, Dec 27, 2018

Foreign Direct Investment in the non-conventional energy sector totalled $ 3,217.43 million in the April 2015 to June 2018 period, according to the Department of Industrial Policy and Promotion (DIPP).

Sharing this information, the Minister of State (Independent Charge) for Power and Renewable Energy, R K Singh told the Lok Sabha: “The renewable energy projects are mostly being implemented in the private sector.

As on November 30, 2018, a total capacity of around 73.95 GW has been installed in the country, of which 37.84 GW has been added during the last four-and-a-half years.”

India pips China in FDI inflows for the first time in 20 years

Source: The Economic Times, Dec 28, 2018

Mumbai: From Walmart to Schneider Electric and Unilever on the one side and TPG Capital or KKR on the other,a tide of global capital is flooding into India from strategic investors to financial sponsors and consequently changing the pecking order of mega M&A sweepstakes in the prized market of Asia.

For the first time in two decades, India has been getting more foreign investment than its neighbour China. In 2018, India saw more than $38 billion of inbound deals compared with China’s $32 billion, buoyed by stable fundamentals, a bankruptcy code and fresh opportunities in sunrise sectors.

India’s foreign direct investment (FDI) was the highest ever with 235 deals amounting to $37.76 billion this calendar year, according to data from Dealogic, a global M&A and capital markets data provider, beating China, which has historically been the favourite for emerging market bets. China’s trade standoff with the US is seen as a major reason for the slowdown. Read the rest of this entry »