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Foreign Direct Investment
The amendments to the 'Press Note 3' by the government will help China increase its share in the overall foreign direct investments attracted by India to 2 per cent levels, a report said on Monday. "The change in the rule is expected to increase the share of Chinese funds in overall FDI to more than 2 per cent, the level it stood at before the Press Note 3," the report by Crisil Intelligence said. Between calendar years 2014 and 2019, cumulative FDI inflows from China, including Hong Kong, accounted for about 2 per cent of total FDI, which contracted to 0.27 per cent after the introduction of new rules in Press Note 3. Easing of Press Note 3 norms is expected to unlock a pipeline of pending proposals, potentially driving a near-term uptick in inflows from China, including Hong Kong, it said. The entity expects the government move to accelerate FDI inflows into India, strengthening its domestic capabilities and reducing reliance on imports. The government first introduced the rules
The government has not made any amendments to the foreign direct investment (FDI) policy for countries sharing land border with India, sources said on Wednesday. In 2020, the government issued Press Note 3 under which investors from these land bordering countries have to mandatorily take prior approval of the government for making investments in any sector. The Press Note 3 is applicable to all the land bordering countries of India in an equal manner, the sources said. The countries are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan. All FDI proposals from these nations undergo the similar process of scrutiny and examination as per standard operating procedure for the processing of investment proposals from these nations. "After issuance of this press note, no amendment has been undertaken in the FDI policy relating to investments from countries sharing land border with India," a source said. These remarks are important as certain reports have stated that the
A Parliamentary Panel on Wednesday urged the government to put safeguard measures in place to counter concerns like profit repatriation while raising the foreign direct investment limit to 100 per cent in the insurance sector. The Standing Committee on Finance, in its report, said the downside of the FDI in India's insurance sector should be dealt with adequately and scrupulously. The Committee would like to emphasise the need for some safeguard measures to be in place to counter concerns like profit repatriation i.e. foreign investors sending earnings back to home countries rather than reinvesting in India; reduced decision-making power of domestic firms; job security concerns arising due to potential automation and cost-cutting measures; focus on high-margin policies, neglecting rural and financially weaker sections etc, it said. With regard to the integration of InsurTech (Insurance Technology) in the sector, the report said it has the potential to enhance efficiency, customer ..
Maharashtra Governor CP Radhakrishnan on Monday said the state is a preferred destination for foreign direct investment (FDI) and contributes more than 14 per cent to the country's gross domestic product (GDP). The governor, addressing the joint session of the state legislature on the first day of the budget session, asserted that Maharashtra was one of the leading industrial states in the country. He said the state government has signed memoranda of understanding (MoUs) worth approximately Rs 15.72 lakh crore with 63 national and international companies during the World Economic Forum in Davos, Switzerland, in January, and these investments will generate more than 15 lakh employment opportunities. Radhakrishnan said the state government is committed to resolving the Maharashtra-Karnataka border dispute and has appointed expert advocates to represent Maharashtra before the Supreme Court. "Maharashtra is a preferred destination for FDI and contributes more than 14 per cent to the ..