The Directorate of Industrial Policy and Promotion – the foreign investment think tank within the Ministry of Commerce and Industry has updated the FDI policy on Monday. This is the sixth annual updation of the policy since the Consolidation FDI Policy was launched in 2010. The latest updates bring the changes brought during the last one year and as a whole it shows that nearly 90% of the FDI are now allowed through automatic route. Besides the existing provisions, the revised policy brings a clear regulation on FDI in startups. FDI in startups According to the Policy, start-ups can mobilise funds in the form of FDI by issuing various instruments. The Policy s
On the settlement day of the Doklam standoff between India and China, a Chinese tabloid – ‘Global Times’ published an article describing how India is now a growing healthcare destination for Chinese patients. The newspaper cited experience of Hua Li (pseudonym), a patent who went to India for treatment of Hepatitis C. “In New Delhi, Hua was taken to one of India's best liver doctors in a private hospital and prescribed medication not yet available in China.” Interestingly, the Chinese woman’s first foreign visit was to India. "The professionalism and cleanliness of India's private hospital is impressive. It's more like a hotel, unlike Chines
Japanese tech cum investment firm Softbank will inject $2.5 billion into the home-grown ecommerce firm Flipkart. Decision of the Masayoshi Son owned SoftBank to add capital to Flipkart will enliven competition and rivalry with Jeff Bezos’s Amazon. In the last few quarters, Flipkart was struggling against a multiple platform oriented Amazon though the Indian firm has higher market share. Huge sales campaign and quick addition of local flavor have made the US company an edge over the domestic firm. Bezos’ entry into food retail business has added strength to the potential of Amazon and it seemed that the US firm is quickly closing in with Flipkart. The latest ext
World’s largest handset maker - Apple was offered import tax concessions by the central government for its India manufacturing facility. According to reports by Reuters, the Cupertino based phone maker has to increase its domestic component sourcing in a phased manner to avail the tax concession. Apple demanded tax concession of different types ever since the CEO Tim Cook originally made the proposal for handset manufacturing in Asia’s fastest growing handset market. Several of its demands were rejected by the government as such concession will led to similar demand from other firms. Midway, Apple demanded a 15-year tax holiday for all components it would import for t
India and the EU-exiting UK hinted that both countries are going to make their economic engagement deeper after the Brexit. The two countries are planning to reach in a Free-Trade Agreement once UK comes out of the European Union. In a meeting between Finance Minister Arun Jaitely and Britain’s Chancellor Philip Hammond in New Delhi, the two countries decided to set up a fund under National Infrastructure Investment Fund (NIIF) to promote clean energy projects. The fund called Green Growth Equity Fund with a corpus of 240 mn pound will be constituted as a sub- fund within the NIIF. Both countries discussed effort to add tradability to rupee in the international markets and
Foreign Direct Investment has registered a smart growth of 18% to reach $46 billion during calendar year 2016. According to the data published by Directorate of Industrial Policy and Promotion (DIPP), Foreign Direct Investment was $39.32 billion during 2015. Smart growth in FDI is a good sign for the economy when global FDI flows are declining. According to UNCTAD, FDI flows to India were $42 bn in 2016 whereas that to China was $139 bn. Sectors including services, telecom, trading, computer hardware and software attracted most of the FDI flows. Main sources of FDI were Singapore, Mauritius, the Netherlands and Japan. The first three are known tax concession countries who enjoys
India’s economic administrators’ attack on inconsistent credit rating standards of western agencies is now joined by the Chinese media. An article published in the partisan tabloid – the Global Times ‘Why India’s sovereign ratings lag behind China’, describes that foreign companies are correct in giving high ranking to China over India. India’s Economic Survey brought out a box criticizing the methodology of credit rating agencies. Edited by Arvind Subramanian, the Survey made a comparative study of ratings on India and China while concluding that China gets a higher rating despite macro indicators are more or less the same. According to
The FDI approvals in future will be examined by the concerned Ministries and sectoral regulators after the abolition of Foreign Investment Promotion Board (FIPB). Finance Minister in his budget speech has indicated winding up of the operations of FIPB as nearly 92% of the FDI proposals are now made through automatic route. The FIPB was created in 1996 as the designated institution for considering FDI proposals that require government approval. It also grants composite approvals involving foreign investment/ foreign technology. End of FIPB also indicate the progress of foreign investment reform as well as depth of opening up of the economy to foreign investors. Still, nearly eight
The Union Commerce Ministry is designing a new scheme aimed at supporting export infrastructure in association with state governments so that states can provide better export facilitation services. Commerce Minister Nirmala Sitharaman after the meeting of central and state officials has stressed states’ own efforts to create infrastructure capabilities in export production. The decision about the launch of common export supporting infrastructure scheme was reached at the second meeting of the Council for Trade Development and Promotion on Thursday (January 5th). The new scheme will be known as Trade Infrastructure for Export Schemes (TIES) is aimed to set up common faciliti
Just two year after its India entry, Chinese mobile phone manufacturer- Xiomi has achieved Rs 7000 crore sales. Another Chinese firm Huawie has reached Rs 10000 crore and several other smaller Chinese firms are also well performing compared to their achievements back at home. Apple, the leader in the global market is here for a long time and its sale is stagnating at around Rs 10000 crore. Xiomi’s silent but rapid march shows that it has the price attraction and product quality that can win Indian hearts. India is world’s fastest growing mobile phone market and is growing at smart pace. Apple’s problems lie in its products as it has no product to compete in Indi
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