Union Minister for Commerce andIndustry Anand Sharma during July 2013 announced major liberalization in the upper limits of foreign direct investment (FDI) in sectors such as defence, telecom, insurance, retail, etc. What were the major announcements made in FDI limits? *.New clause of raising FDI in Defence sector, under which FDI in state-of-the-art segment of defence manufacturing can be raised from 26% through approval of the Cabinet Committee on Security (CCS). However, for the rest of the defence sector FDI upper-limit remains at 26% *.In single-brand retail FDI upto 49% will be through automatic route, while approval of Foreign Investment Promotion Board (FIPB) will be required for FDI above 49% *.In multi-brand retail also FDI upto 49% made through direct route *.49% FDI in insurance sector approved through automatic route (Present limit for FDI through automatic route was 26%) *.FDI limit through automatic route in power exchange sector set at 49% *.100% FDI in telecom sector cleared by the union govt. *.The condition of divestment to Indian partner in tea sector cancelled and now stakes can bedivested to third-parties also *.FDI cap in asset reconstruction companies (ARCs) through automatic route set at 49% while FDI above it (till 100%) willbe through FIPB approval
Posted on: Thu, 25 Jul 2013 07:11:43 +0000
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