Tag Archives: DIPP

ILN Today Post

Changing landscape of the Indian Foreign Direct Investment Policy

The foreign direct investment (“FDI”) policy of India has in the recent past witnessed a series of reforms introduced by the Government with the aim of increasing FDI inflows into India inter alia by liberalizing FDI in various sectors and streamlining the approvals processes. According to the Ministry of Commerce and Industry, FDI inflows hit an all-time high of USD 60.1 billion in 2016-17 as compared to FDI inflows of USD 55.6 billion for the year ending March 2016, (as against record high of USD 139 billion FDI inflows in China in 2016).

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ILN Today Post

Fifth Edition of the Consolidated FDI Policy Released by DIPP

The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India (“DIPP”) on April 10, 2012 released the fifth edition of the consolidated Foreign Direct Investment (“FDI”) Policy of India vide circular 1 of 2012.

The circular consolidates the extant FDI policy of India and has accordingly introduced, inter alia, the following revisions to the FDI Policy:

  1. FDI in Commodity Exchange – Foreign investment mandate in commodity exchange, which until now required approval from the Foreign Investment Promotion and Board (“FIPB”) under the composite cap of 49% for FDI as well as investment by Foreign Institutional Investor (“FIIs”) (26% for FDI and 23% for FIIs) has been liberalized. Henceforth, investment by FIIs, in commodity exchanges will not require prior FIPB approval. However, other than FII investment, FIPB approval will still be required for FDI in commodity exchanges. 
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ILN Today Post

Investment Friendship with Pakistan

DIPP has sent a proposal to the Ministry of Finance, on February 16, 2012, to relax the current FDI norms to allow FDI from Pakistan. In terms of the present FDI norms, a non-resident entity other than a citizen of Pakistan or an entity incorporated in Pakistan can invest in India. Pakistan is the only country expressly debarred from investing into India. An individual or an entity incorporated in Bangladesh can invest only under the FIPB approval route. Although Pakistan allows FDI from India, the Government of India has always had security concerns in reciprocating Pakistan’s stance.

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ILN Today Post

Fourth Edition of the Consolidated FDI Policy Released by DIPP

The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India (“DIPP”) on September 30, 2011 released the fourth edition of the consolidated FDI Policy of India vide Circular 2 of 2011.

As per the DIPP, some of the major revisions to the FDI Policy:

1.         Exemption to Educational Institutions and Old Age Homes – FDI in construction development activities with respect to educational institutions and old-age homes has been exempted from the conditions imposed on FDI in Construction Development Sector, viz. the minimum area and built-up area requirement; minimum capitalization requirement; and lock-in period.

The exemption has been granted with an intent to augment the physical infrastructure (with respect to educational institutions as well as old-age homes) and bring it up to global standards.

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