Tag: Foreign Direct Investment

India Inc’s foreign investments jumps 2-fold to $3 bn in March

18/04/2017 15:32

Foreign direct investment (FDI) by Indian companies in their overseas ventures jumped over two- fold to USD 2.99 billion last month.

Indian firms had made investments of USD 1.42 billion in their overseas joint-ventures/subsidiaries in March 2016.

Investments in March this year were much higher than the preceding month, February, at USD 867.53 million, the Reserve Bank data showed today.

Their investment came in the form of equities USD 1.99 billion, loans of USD 742.60 million and issuance of guarantee worth USD 251.40 million.

Among major investors include Bharti Airtel with Ltd USD 765.20 million and Tata International Ltd, USD 179.22 million.

ONGC Videsh Ltd invested USD 75.49 million and WNS Global Services USD 53.78 million.

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FDI inflows into India stood at $5.34 bn in April-May

FDI inflows into India stood at $5.34 bn in April-May

22/07/2016 16:59

India received USD 5.34 billion foreign direct investment in the first two months of the current financial year, Parliament was informed today.

During April-May the country attracted USD 4.76 billion FDI under automatic route, while USD 582 million came through the approval route, Minister of State for Finance Arjun Meghwal said in a written reply to the Lok Sabha.

He said the government has made changes in the FDI policy in several sectors “to ensure that India remains increasingly attractive and investor friendly investment destination”.

The government has relaxed FDI Policy in sectors like defence, pharmaceuticals, aviation, food retailing and broadcast.

During the two months, defence received no FDI, while pharmaceuticals attracted USD 452.86 million foreign inflows.

The other sectors include air transport (USD 5.65 million), information and broadcasting (USD 39.2 million) and retail trading (USD 7.94 million).

Replying to a separate question, Meghwal said in the first quarter, April-June, of 2016-17 Foreign Portfolio Investors pumped in Rs 10,4561 crore.

“To attract global investor, a number of reforms were taken in the FDI policy and FPI policy,” he added.

RBI notifies 49 pct FDI under automatic route in insurance

RBI notifies 49 pct FDI under automatic route in insurance

01/04/2016 00:44

Reserve Bank has notified 49 per cent foreign direct investment (FDI) under automatic route in insurance sector, said the PTI report.

“The extant FDI policy for insurance sector has since been reviewed by the Government of India and accordingly it has been decided to enhance the limit of foreign investment in insurance sector from 26 to 49 percent under the automatic route subject to certain terms and conditions which have been notified on March 30,” RBI said in a notification.

“No Indian Insurance company shall allow the aggregate holdings by way of total foreign investment in its equity shares by foreign investors, including portfolio investors, to exceed forty-nine percent of the paid up equity capital of such Indian Insurance company,” it said.

“The foreign investment up to 49 percent of the total paid-up equity of the Indian Insurance Company shall be allowed on the automatic route subject to approval or verification by the Insurance Regulatory and Development Authority of India,” it said.

The foreign equity investment cap of 49 per cent will apply on the same terms as above to Insurance Brokers, Third Party Administrators, Surveyors and Loss Assessors and Other Insurance Intermediaries appointed under the provisions of the Insurance Regulatory and Development Authority Act,1999.

Earlier, only up to 26 per cent FDI was permitted through the automatic approval route. For FDI up to 49 per cent, the approval of the Foreign Investment Promotion Board was required.

There are 52 insurance companies operating in India, of which 24 are life insurance business and 28 in general insurance.

Govt allows 100 pct FDI in e-commerce marketplaces

Govt allows 100 pct FDI in e-commerce marketplaces

30/03/2016 01:51

The government permitted 100 per cent FDI in the market place format of e-commerce retailing with a view to attract more foreign investments.

As per the guidelines issued by the Department of Industrial Policy and Promotion (DIPP) on FDI in e-commerce, foreign direct investment (FDI) has not been allowed in inventory-based model of e-commerce.

At present, global e-tailer giants like Amazon and Ebay are operating online marketplaces in India while homegrown players like Flipkart and Snapdeal have foreign investments even as there were no clear FDI guidelines on various online retail models, reported PTI.

To bring clarity, the DIPP has also come out with the definition of ‘e-commerce’, ‘inventory-based model’ and ‘market place model’.

Market place model of e-commerce means providing of an IT platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

The inventory-based model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to consumers directly, according to the guidelines.

A market place entity will be permitted to enter into transactions with sellers registered on its platform on business-to-business basis, DIPP said.

It said that an e-commerce firm, however, will not be permitted to sell more than 25 per cent of the sales affected through its market place from one vendor or their group companies.

“In order to provide clarity to the extant policy, guidelines for FDI on e-commerce sector have been formulated,” DIPP said.

The government has already allowed 100 per cent FDI in business-to-business (B2B) e-commerce.

FDI in India up 29 pct after ‘Make in India’ launch: Min

FDI in India up 29 pct after ‘Make in India’ launch: Min

17/03/2016 10:15

The Indian Government has said that Foreign Direct Investment in the country has increased by 29 per cent for the 15-month period ended December last year after the launch of ‘Make in India’ initiative.

As per reports, the initiative aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation.

Commenting on the issue, Commerce and Industry Minister Nirmala Sitharaman told the media, “FDI inflow has increased 29 per cent during October 2014 to December 2015 (15 months after ‘Make in India’) compared to the 15 months period prior to the launch of this initiative.”

“During April-January 2016, the government has received 424 FDI proposals. Out these, 285 proposals have been disposed of,” he added.

The Minister further added that foreign investment in business to customer (B2C) e-commerce activities had been “opened in a calibrated manner” and entity was permitted to undertake retail trading through e-commerce under certain circumstances.