Govt gets going on new FDI rules to woo dollars
The government’s plans to overhaul India’s FDI policy regime has entered the concluding lap with the DIPP beginning the final round of consultations with ministries. HT reports.business Updated: Jul 02, 2013 03:37 IST
The government’s plans to overhaul India’s foreign direct investment (FDI) policy regime has entered the concluding lap with the Department of Industrial Policy and Promotion (DIPP) beginning the final round of consultations with ministries including finance, telecom, home, petroleum and defence.
The government is readying a raft of measures including allowing upto 100% foreign direct investment (FDI) in India's telecommunication sector and opening up the defence production sector to 49% FDI from the current limit of 26%.
The views of the inter-ministerial discussions, which are expected to conclude on Tuesday, will then be reviewed by Prime Minister Manmohan Singh along with finance minister P Chidambaram and commerce minister Anand Sharma, before the matter is taken up by the Cabinet by this month-end.
A new FDI policy will propose easing of caps on several sectors broadly based on recommendations made by a committee headed by economic affairs secretary Arvind Mayaram.
The committee, which submitted its report last month, has recommended further opening up of FDI in multi-brand retail to 74% from the current 51%, allowing upto 49% FDI in public sector banks and raising the FDI ceiling in insurance and pension sector to 74%.
The move is aimed at attracting more dollars into India.