Reforms in FDI
Reforms in FDI
Today, India is
the fastest growing economy among major Nations. The World Bank has
improved India's ranking by 12 places in the 2016 Study of Ease of Doing
Business. FDI has gone up by 40%. Several Global Institutions have
projected India as the leading destination for FDI in the World. IMF has
branded India as the brightest spot in the Global Economy whereas the World
Bank projects India's growth at 7.5% and even better.
2.
With coming of NDA Government to power, Shri Narendra Modi has expressed his
commitment to poverty elimination, inclusive development [make India a
developed Country] and also to make India a Global Manufacturing Hub.
Being aware of the constraint of financial resources for fast tracking the
development process, a series of Economic Reforms and a number of measures to
improve the Ease of Doing Business in the country have been set in
motion. A number of stalled projects have been de-bottlenecked and
fast-tracked. The results are showing up.
3.
However, the commitments to the millions of youth of the Country to provide
them remunerative employment or entrepreneurial opportunities is not yet fully
realized. With this in mind, Prime Ministter Mr. Modi launched the
Campaigns like 'Make In India' and 'Skill India'. The latest in the
series is the upcoming 'Start-up India' initiative. To further boost this
entire investment environment and to bring in foreign investments in the
country, the Government has brought in FDI related Reforms and liberalisation
touching upon 15 major Sectors of the Economy. The salient measures are:
i. Limited
Liability Partnerships, downstream investment and approval conditions.
ii. Investment
by companies owned and controlled by Non-Resident Indians (NRIs)
iii. Establishment
and transfer of ownership and control of Indian companies
iv. Agriculture
and Animal Husbandry
v. Plantation
vi. Mining
and mineral separation of titanium bearing minerals and ores, its value
addition and integrated activities
vii. Defence
viii.Broadcasting
Sector
ix. Civil
Aviation
x. Increase
of sectoral cap
xi. Construction
development sector
xii. Cash
and Carry Wholesale Trading / Wholesale Trading (including sourcing from MSEs)
xiii.Single
Brand Retail Trading and Duty free shops
xiv.Banking-Private
Sector; and
xv. Manufacturing
Sector
4.
The Crux of these reforms is to further ease, rationalise and simplify the
process of foreign investments in the country and to put more and more FDI
proposals on automatic route instead of Government route where time and energy
of the investors is wasted. It is one more proof of minimum government
and maximum governance. Further refining of foreign investments in key
Sectors like Construction where 50 million houses for poor are to be
built. Opening up the manufacturing Sector for wholesale, retail and
E-Commerce so that the Industries are motivated to Make In India and sell it to
the customers here instead of importing from other countries. The
proposed reforms also enhance the limit of Foreign Investment Promotion Board
(FIPB) from current Rupees Three thousand crores to Five thousand crores.
The proposal also contains many other long pending corrections including those
being felt by the limited liability partnerships as well as NRI owned Companies
who seem motivated to invest in India. Few other proposals seek to
enhance the sectoral Caps so that foreign investors don't have to face
fragmented ownership issues and get motivated to deploy their resources and
technology with full force.
5.
With this round of Reforms, the Government has demonstrated that India is
unstoppable on the path of Economic Development. Prime Minister has
reiterated that Economic Wellbeing of the people of India is the main Task
before him. It is also clear that India is a Country which is more than
ready to integrate with the Global Economy because it feels that the Fruits of
Development will reach to the common man only if there is Development.
Above all every citizen in all nooks and corners must have a stake.
6.
Along with these sectoral reforms, DIPP has also been advised to consolidate
all FDI related instructions contained in various notifications & press
notes and prepare a booklet so that the investors don't have to refer to
several documents of different timeframes. This exercise of PM, Shri
Narendra Modi is intended on the one hand to further open up the Sectors for
more foreign investments in the country and also to make it easy to invest in
India. In the normal course, the Policy corrections in 16 areas would
have taken at least one year to process and get approvals. Thus, this
action is a very dynamic step in terms of integrating the Indian Economy with
the rest of the World for attracting investments and technology and generating
employment for enhancement of income of the people of India.
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Relieving of Chairman Tobacco
Board
In pursuance of
the Secretariat of the Appointments Committee of the Cabinet, Department of
Personnel & Training’s O.M.No. 10/6/2012-EO(SM-I) dated the 9.11.2015, the
Competent Authority has approved placing of Dr. K.Gopal, IAS(TN:92), Chairman,
Tobacco Board, Guntur on compulsory wait in the Department of Personnel and
Training with immediate effect and until further orders.
Dr. K.Gopal, Chairman, Tobacco Board is relieved of his duties with effect from 10.11.2015(AN) with the directions to report to the Department of Personnel and Training.
Dr. K.Gopal, Chairman, Tobacco Board is relieved of his duties with effect from 10.11.2015(AN) with the directions to report to the Department of Personnel and Training.
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