Govt’s FDI push gets India Inc’s approval

Govt’s FDI push gets India Inc’s approval

FPJ BureauUpdated: Thursday, May 30, 2019, 02:45 PM IST
article-image

New Delhi : The government’s move to relax FDI norms in sectors, including civil aviation, single-brand retail, defence and pharma, will help attract big investments and boost job creation, India Inc said.

Terming the decision as ‘excellent’, Dhiraj Mathur, Partner – Aerospace and Defence, PwC said, “both sectors (aviation and defence) are capital intensive with long gestation periods. Defence is also extremely technology driven and OEMs invest huge sums of money generating technology and IP. The fact that there was no control permitted earlier was a major issue that was quoted for not investing in India.

That obstacle has now been removed and coupled with the major simplification in the DPP, OEMs should respond positively and proactively to these path breaking reforms”.

Other sectors in which FDI norms have been relaxed include e-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry. “Liberalisation of the FDI regulations reflects the government’s commitment to reforms and openness, and reassures investors that ease of doing business remains a high priority,” Chandrajit Banerjee CII Director General said. “Taken together, the FDI rules announced today will attract big new investments across key sectors such as food processing, defence production, pharmaceuticals and civil aviation, among others, thereby adding to growth and employment.”

In the defence sector, foreign investment beyond 49 per cent has been permitted through the approval route in cases resulting in access to modern technology in the country or for other reasons.

The government has done away with the clauses pertaining to the ‘state-of-the-art’ technology.

Stating that one would have to see the final policy document to understand the impact of the proposed liberalisation, Akash Gupt, Partner and Leader – Regulatory, PwC said, “For example, would ‘state of the art’ and ‘cutting edge’ technology be defined or will it be determined by the Government authorities based on facts.

The policy already provides for the window of granting relaxations from sourcing norms for single brand retail trading of products made with ‘state of the art’ and ‘cutting edge’ technology. It seems proposed announcements seeks to provide more clarity on the framework for relaxation.”

RECENT STORIES

Rally Of Green At Dalal Street: BSE, Nifty End FY24 On A High Note; Will The Good Run Continue In...

Rally Of Green At Dalal Street: BSE, Nifty End FY24 On A High Note; Will The Good Run Continue In...

Ipca Laboratories Shareholders Reject Employees Stock Option Scheme Resolution

Ipca Laboratories Shareholders Reject Employees Stock Option Scheme Resolution

Toyota Set To Raise Prices On Select Models Starting April 1!

Toyota Set To Raise Prices On Select Models Starting April 1!

The Storm On Wheels: Suzuki Launches V-STROM 800DE

The Storm On Wheels: Suzuki Launches V-STROM 800DE

With 1,59,000 Cases, Maharashtra, India's Richest State Has The Highest Number Of Bank Frauds:...

With 1,59,000 Cases, Maharashtra, India's Richest State Has The Highest Number Of Bank Frauds:...