 "More FDI reforms to be rolled out over next year: DIPP secretary")
Department of Industrial Policy and Promotion Secretary Ramesh Abhishek on Saturday said the government was set to bring in a new set of FDI (foreign direct investment) policy reforms across sectors over the next one year.
Speaking at the annual general meeting of the Confederation of Indian Industry, Abhishek, however, did not disclose the sectors that might see changes in investment rules, saying more than 90 per cent of all sectors are open.
In June last year, the government had relaxed FDI norms in single-brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products.
The Centre had allowed up to 100 per cent FDI in defence through the approval route, 100 per cent FDI in greenfield pharma via the automatic route, 100 per cent in brownfield pharma — of which, 74 per cent will be through automatic route— 100 per cent FDI in scheduled airlines and up to 49 per cent FDI in airlines through automatic route.
The government may also be looking to include the contentious multi-brand retail segment to this list.
This may be done by allowing food retailers to generate around 20-25 per cent of their sales from non-food items such as kitchen-use products or basic household requirements like toothpaste.
Currently, FDI in multi-brand retail trading is permitted, subject to a range of stipulations. A total 100 per cent FDI is allowed in stores that sell only made-in-India food products or locally produced farm goods.
Apart from Amazon, which has committed to invest $515 million over the next five years, there have been no takers for the food retail business so far. Also, with the dismantling of the Foreign Investment Promotion Board (FIPB), the entire policy architecture governing FDI also needs to be reviewed.
The rationale behind the move is that most FDI is now on the automatic approval trajectory. Only an estimated seven - eight per cent of all sectors are under the approval route.
Commerce and Industry Minister Nirmala Sitharaman had hinted in the absence of FIPB, departmental regulators might suffice to decide.
On the other hand, Abhishek believes administrative departments could also be considered for taking the final call.
Speaking at the annual general meeting of the Confederation of Indian Industry, Abhishek, however, did not disclose the sectors that might see changes in investment rules, saying more than 90 per cent of all sectors are open.
In June last year, the government had relaxed FDI norms in single-brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products.
Also Read
The government may also be looking to include the contentious multi-brand retail segment to this list.
This may be done by allowing food retailers to generate around 20-25 per cent of their sales from non-food items such as kitchen-use products or basic household requirements like toothpaste.
Currently, FDI in multi-brand retail trading is permitted, subject to a range of stipulations. A total 100 per cent FDI is allowed in stores that sell only made-in-India food products or locally produced farm goods.
Apart from Amazon, which has committed to invest $515 million over the next five years, there have been no takers for the food retail business so far. Also, with the dismantling of the Foreign Investment Promotion Board (FIPB), the entire policy architecture governing FDI also needs to be reviewed.
The rationale behind the move is that most FDI is now on the automatic approval trajectory. Only an estimated seven - eight per cent of all sectors are under the approval route.
Commerce and Industry Minister Nirmala Sitharaman had hinted in the absence of FIPB, departmental regulators might suffice to decide.
On the other hand, Abhishek believes administrative departments could also be considered for taking the final call.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%