Make in India overhaul: FDI policy to get tailored to attract investments

In order to align the policy with industrial codes, an old proposal based on globally prevalent practices, could be re-considered. Foreign investors can just look at the codes and know the relevant FDI policy for it which consequently will increase their interest for doing business in India, as mentioned in the report,.

Prime Minister Narendra Modi’s Make in India programme is likely to undergo an overhaul which could cut down red tapism in the country, according to media reports.

The renovative step is likely to simplify the overall policy rather than extending sectoral limits, which it has already done in some areas. It would also reduce the need to take prior approval from the government., said the report.

“FDI policy should be simple… Why should proposals for Rs 5 crore or so wait for government clearance,” said a finance ministry official as mentioned in the report.

The government now attempts to make the policy short and concise in order to reduce delays. Barriers could be levied on all the sectors barring a few sensitive ones, as per experts.

In order to align the policy with industrial codes, an old proposal based on globally prevalent practices, could be re-considered. Foreign investors can just look at the codes and know the relevant FDI policy for it which consequently will increase their interest for doing business in India, as mentioned in the report.

Foreign investment limits have already been stretched by the government in multiple sectors and has even coaxed the parliament to to approve a higher 49% limit in insurance. FDI in sectors like telecom and pharma has been allowed along with 74% in private banks and other sectors and 49% in some industries. No foreign investment is allowed in some sectors such as gambling, manufacture of cigarettes and atomic energy, stated the report.

Source: India Infoline
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