FDI hike in 13 sectors, 100% in telecom as per Government
FDI in multi-brand retail sector is allowed after the agreement from the Foreign Investment Promotion Board (FIPB). With the growing demands from the overseas retails the government decided to liberalise Foreign Direct Investment (FDI) limits in 13 sectors including telecom, insurance, retail and defence. The government also cleared the much awaited 100 % FDI in the telecom sector from the existing 74%. Commerce and Industry Minister Anand Sharma stated that the foreign direct investment limit in insurance sector will be increased to 49% from the existing 26%. In multi-brand retail, up to 49% overseas investment would now be allowed through automatic route. There is no decision yet taken on Foreign Direct Investment in media.
Key points in FDI stated by Anand Sharma
- Petroleum and Natural Gas the sectoral cap remains unchanged at 49%
- Power exchanges route changed to automatic; cap remains same as 49%
- In insurance sector FDI cap will be 49% through automatic route
- Asset reconstruction companies: FDI cap upto 49% through automatic route. From 49% to 100 % it will be through FIPB route
- In tea sector, condition of divestment to Indian partners deleted
- In single brand retail, FDI upto 49% it will be under automatic route; beyond 49% it will be through FIPB route
- No change of route in civil aviation sector for now
In defence sector, 26% through FIPB route stays; for state-of-art technologies, FDI beyond this to be approved through CCS.
Month: Current Affairs - July, 2013