Thursday, June 20, 2013

Union Government of India proposed plan to raise FDI Limit in Key Sectors

To promote India as an attractive destination for investment, the Union Finance Ministry on 18 June 2013 proposed sweeping changes in Foreign Direct Investment (FDI) regime. 

The committee that was headed by the Economic Affairs Secretary Arvind Mayaram recommended to raise the Foreign Direct Investment limit to 49 percent from 26 percent at present in almost all sectors like multi-brand retail, defence and telecom through automatic route.

The committee also recommended the government to increase the cap of FDI to 74 percent in multi-brand retail trading and 49 percent in single-brand retail. 

About Arvind Mayaram Committee:

The Union Government in March 2013 constituted a four-member committee to give clear definitions to Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) with an aim of removing the ambiguity from both types of foreign investments. The Committee was headed by the Economic Affairs Secretary Arvind Mayaram and the high power committee constituted a DIPP Secretary, an RBI Deputy Governor and a SEBI Whole-time Member. The report pf the committee was submitted to the Union Ministry of Finance on 18 June 2013.

No comments:

Post a Comment