Idea’s proposal seeking 100 pc FDI under consideration of DIPP

download (2).jpgSource: The Economic Times, Apr 22, 2018

NEW DELHI: Idea Cellular Ltd’s proposal to allow up to 100 per cent foreign direct investment in the company is under consideration of the Department of Industrial Policy and Promotion (DIPP), an official said.

The proposal assumes significance against the backdrop of pending merger of Idea Cellular Ltd and Vodafone India to form the country’s largest telecom operator.

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FDI threshold set at $20 million for merchant banking, asset management

Source: Business Standard, Apr 16, 2018

Foreign direct investors, keen on pumping money in merchant banking or asset management, have to bring in a minimum of $20 million.

The Centre has fixed a threshold of $20 million for foreign direct investments (FDIs) in unregistered fund-based activities such as merchant banking, underwriting, portfolio management services, stockbroking, and asset management.

The fund-based activities also include venture capital, custodian services, factoring, leasing and finance, housing finance, credit card business, micro credit, and rural credit. On the other hand, threshold for non-fund activities, such as investment advisory services, financial consultancy, forex broking, has been set at $2 million.

These activities also include money changing business and credit rating agencies. All these activities are unregulated by any financial sector regulator and FDI is allowed under the government route.

Tobacco farmers argue for banning FDI but major firms warn of monopoly

download (3)Source: Business Standard, Apr 12, 2018

New Delhi: Business chambers, farmers and cooperatives are divided on the matter of banning all forms of foreign direct investment (FDI) in the tobacco sector.

Two major players, ITC and Godfrey Phillips India, apart from farmer bodies, are on opposing ends of the debate, as were many stakeholders on Wednesday at a meeting organised by the department of industrial policy and promotion (DIPP) to discuss this.

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DIPP to hold consultations with stakeholders on FDI in tobacco

Source: The Hindu Business Line, Apr 10, 2018

New Delhi: The Department of Industrial Policy & Promotion (DIPP), the nodal body for decisions related to the Foreign Direct Investment (FDI) policy, has sought consultations with stakeholders on possible changes in FDI rules for the tobacco industry.

The meeting, scheduled on Wednesday, will have participants from across the industry and government departments.

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FDI rises only 0.27 per cent during April-December FY18

download (1)Source: The Economic Times, Feb 22, 2018

NEW DELHI: Overseas investments into India saw a sluggish growth of 0.27% to $35.94 billion during April-December 2017.

According to data released by the Department of Industrial Policy and Promotion (DIPP), foreign direct investments dropped by 4% in rupee terms to Rs 2.31lakh crore.

For April-December 2016-17, FDI stood at $35.84 billion. Singapore, Mauritius, the Netherlands and Japan led the investments. For the current financial year, FDI inflows between April and December dropped 41% in services sector compared to the year-ago period. Investments picked up in other sectors, including telecommunication, automobile, pharmaceutical and construction.

According to UNCTAD’s Investment Trends Monitor, global (FDI) inflows slipped 16% in 2017 to $1.52 trillion mainly due to slump in the US and the UK. India was at the 10th spot among the top host economies for FDI inflows in 2017. US, China and Hong Kong were the top three in the list.

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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