Government opening more doors for free flow of foreign investments into India

Despite being in a tussle with major foreign investors on the matter of taxes, the government is doing all it can to make it easier for foreign investment to freely flow into India. In what will be a major shot in the arm for foreign investment, Modi government plans to do away with the need for RBI approval for Foreign Direct Investment (FDI) in India, reported ET Now. According to ET Now, the government plans to amend the FEMA provisions through the Finance Bill. The new provisions will be notified soon, the channel said. Investments will be approved via the FIPB route, ET Now said. "The government wants to ease the regulatory environment for FDI. This is a part of the initiative to improve ease of doing business. The government is working on a new set of guidelines under which FDI proposals will not require RBI approval if the government has given a nod," ET Now said. "Government will allow FDI to be approved through a single-window clearance," ET Now added. Foreign direct investment in India grew by about 40 per cent year-on-year to Rs 1.76 lakh crore in 2014-15, Finance Minister Arun Jaitley said last week In 2013-14, the country had attracted Rs 1.26 lakh crore FDI. During the last fiscal, the Foreign Investment Promotion Board (FIPB) had received 350 proposals and in 11 meetings and 241 were cleared, Jaitley said. Others are pending at various stages, he said. "...there is an increase of about 40 per cent (in FDI) over the previous year," he said. According to the data of Department of Industrial Policy and Promotion (DIPP) the top 10 sectors that receive maximum foreign investment include services, automobiles, telecommunication, computer software and hardware and pharmaceuticals. India attracts maximum FDI from Mauritius, Singapore, the Netherlands, Japan, and the US. Source- businessinsider.in For further assistance related to Investment based queries in Dubai &India, please visit: http://www.pursueasiaconnexio.com/#