Govt to ease FDI in print media, construction, retail

indexSource: Business Standard, May 17, 2017

New Delhi: The government is moving ahead with further opening of print media, construction and retail sectors to foreign investments, and detailed deliberations in this regard were held in the finance ministry on Wednesday.

The commerce and industry ministry may soon approach the Union Cabinet to get the final approval on the proposals, sources said.

According to them, the government is considering to relax foreign direct investment (FDI) norms in certain areas of print media.Currently, government allows foreign investment in areas such as printing of newspapers and publishing of scientific magazines with certain conditions and FDI caps.

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Retail inflation seen easing in April on lower food prices

Source : .Financial Express 12 May 2017

Inflation seems to have cooled in April due to lower food prices, but the pullback may not give the Reserve Bank of India enough leeway to ease monetary policy anytime soon, according to a poll conducted by Reuters.

Consumer price inflation is expected to have remained below the RBI’s medium-term target of 4.0 per cent for the sixth successive month due to lower base effects and a fall in the cost of pulses, cereals and perishable goods.

The poll of more than 30 economists predicts inflation fell to a three-month low of 3.49 per cent in April from 3.81 per cent the previous month.

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Food retail reforms: Narendra Modi government mulls relaxing FDI rules

Source : .financialexpress

The government is considering a proposal to ease foreign direct investment (FDI) guidelines in the retailing of food products to allow a certain percentage of locally-produced non-food items along with the edible products. Food processing minister Harsimrat Kaur Badal told FE her ministry has suggested that a foreign retailer be allowed to sell locally-produced non-food items worth 25% of its investments at the farm-gate level. However, a final decision will likely be taken after comprehensive consultations among ministries, including commerce and industry, food processing, and finance.

The move to relax the rule comes after several global retailers such as Walmart, Tesco, Metro Cash and Carry and Auchan Group conveyed to the government their willingness to set up shops here, provided the rules are relaxed to add more items to the shelves, official sources had told FE early last month.

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Government to widen entry for foreign funds while shuttering FIPB

Source: The Economic Times, Apr 20, 2017

NEW DELHI: The proposed dismantling of Foreign Investment Promotion Board, which vets proposals involving fund inflows from overseas, is likely to be bundled with related policy reforms.

On top of the list is doing away with prior government approval for investments in most sectors, including single-brand retail, which could see dilution of the 30% domestic sourcing clause.

“Contours of the proposed changes to the foreign direct investment policy are almost ready… Non-strategic sectors should be on automatic,” said a senior government official privy to discussions on the matter. Read the rest of this entry »

India jumps to 8th place on Global FDI Confidence Index

Source: The Economic Times, Apr 19, 2017

NEW DELHI: India has jumped one spot to 8th rank in the 2017 A.T. Kearney Foreign Direct Investment (FDI) Confidence Index. Governance and regulatory issues made up 7 of the top-10 factors that investors consider when deciding on an investment destination according to the report. Last year factors such as domestic market size and cost of labour were the top issues for investors.

India’s reforms to enable a ‘transparent’ and an ‘easy’ business environment, have made it an attractive destination for foreign companies, the AT Kearney report said.

While US topped the list, Germany and China were at the second and third respectively. United Kingdom and Canada make up the rest of top 5. Read the rest of this entry »

Government may soon allow 100% FDI in cash, ATM management companies

Source: The Economic Times, Apr 16, 2017

NEW DELHI: Cash and ATM management companies will soon be allowed to attract 100 per cent foreign direct investment as they are not required to comply with the Private Security Agencies (Regulation) Act (PSARA).

A clarification to this effect is likely to be issued by the home ministry shortly.

The clarification will be against the backdrop of the confusion among firms in cash and ATM management relating to compliance with the Act, under which they can receive FDI only up to 49 per cent. Read the rest of this entry »

No proposal to review FDI in multi-brand retail: Govt

Source: Business Standard, Apr 10, 2017

The government on Monday said there is no proposal under its consideration to review the foreign direct investment (FDI) policy in the multi-brand retail sector.

“No proposal is under consideration of the government to review the extant FDI policy on multi-brand retail,” Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.The current FDI policy permits overseas players to hold 51 per cent stake in an Indian retail company.

So far, only one foreign player, Tesco, has received approval for opening stores under the multi-brand retail policy. Replying to a separate question, she said that government has been interacting with investors to identify issues for promoting FDI in the food processing sector.

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