Govt may soon consider easing local sourcing for FDI in single-brand retail

Source: Business Standard, Aug 26, 2019

New Delhi: The government will soon consider a proposal of relaxing rules for complying with the mandatory 30 per cent local sourcing norms by foreign single brand retailers, official sources said.

As per the proposal, single-brand retail firms would also be permitted to open online stores before setting up brick-and-mortar shops.

Currently, online sale by a single-brand retail player is allowed only after opening of physical outlet. Read the rest of this entry »

Govt to clarify on applicability of FDI policy on digital media: Report

Source: LiveMint.com, Aug 18, 2019

New Delhi: The government is likely to come out with a clarification on applicability of the foreign direct investment policy on the digital media sector, official sources said.

The present FDI policy is silent on the fast-growing digital media segment.

In the print media sector, 26% FDI is allowed through government approval route. Similarly, 49% FDI is permitted in broadcasting content services through government approval route.

But 100% is allowed for up-linking of non-news and current affairs’ TV channels, and down-linking of TV channels through automatic approval route. Read the rest of this entry »

Govt likely to permit 100 per cent FDI in contract manufacturing

Source: The Hindu Business Line, Aug 11, 2019

New Delhi: The government is working on a proposal to allow 100 per cent FDI in contract manufacturing to attract overseas investments, sources said.

According to the existing foreign investment policy, 100 per cent foreign direct investment (FDI) is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without government’s approval. Read the rest of this entry »

Govt looks at eliminating FDI security gaps through scrutiny measures

Source: Business Standard, Aug 08, 2019

New Delhi: Concerned over rising foreign direct investment (FDI) inflows into strategic sectors like telecom as well as information technology (IT) and IT-enabled Services (ITeS) through the automatic route, the government is considering eliminating the security gaps through a stringent scrutiny mechanism.

The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed an online filing of advance foreign investment returns on the Foreign Investment Facilitation Portal (FIFP), which will be accessible to the Reserve Bank of India (RBI), the Ministry of Home Affairs and other security agencies.

The government is worried that a transfer of data from India, through IT investment, may threaten national security. Besides, it has been observed that very little information comes to the government from FDI flowing through the automatic route. Read the rest of this entry »

India received highest-ever FDI worth USD 64.37 billion in FY19

Source: The Economic Times, Jul 30, 2019

India received the highest-ever FDI inflow of USD 64.37 billion during the fiscal ended March 2019, said a government report. According to the Annual Report 2018-19 of the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investments (FDI) worth USD 286 billion were received in the country in past five years.

“In the current financial year (2018-19), the country registered highest ever FDI inflow of USD 64.37 billion,” the report said.

Highlighting the importance of FDI, it said the foreign inflows bring in resources, the latest technology and best practices to push economic growth on to a higher trajectory. Read the rest of this entry »

Local sourcing norms for FDI in single brand retail to be eased in few weeks: Piyush Goyal

Source: The Economic Times, Jul 16, 2019

NEW DELHI: India will be easing mandatory local sourcing norms for FDI in single brand retail trading in the next few weeks, Commerce and Industry Minister Piyush Goyal said.

“India has opened up opportunities for single brand retail and is easing some detrimental clauses of the policy in next few weeks which will help single brand retail come in a bigger way to the country,” an official statement said quoting the minister.

He was addressing CEOs of multi-national companies in the UK-India Joint Economic and Trade Committee (JETCO) meeting held on Monday in London. Read the rest of this entry »

Renewable energy sector received $1.5-billion FDI in FY19

Source: Financial Express, Jul 12, 2019

The renewable energy sector received $1.5 billion of foreign direct investment (FDI) in FY19, 20.1% higher than the previous fiscal, power minister RK Singh informed Parliament on Thursday.

In the five-year period since FY15, FDI in the sector has been $4.8 billion.

The government had allowed 100% FDI in the sector through the automatic route. India ranks fourth among 40 countries in EY’s 2019 Renewable Energy Country Attractiveness Index report.