Monday December 10, 2018
Home India Cabinet nod f...

Cabinet nod for merging FDI, FII limits

0
//
Republish
Reprint

New Delhi: The cabinet committee on economic affairs on Thursday cleared a policy for determining composite foreign investment limits by including funds flowing through foreign direct investment (FDI), foreign institutional investment (FII) and other routes.

The committee approved “the introduction of composite caps for the simplication of foreign direct investment”, Finance Minister Arun Jaitley told reporters after the cabinet meeting here.   Credits: https://www.google.co.in/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAYQjB1qFQoTCJHy2dCo38YCFVFKjgodgHAPkQ&url=http%3A%2F%2Fwww.edukart.com%2Fblog%2Ffdi-understanding-the-concept%2F&ei=pHanVZGQGtGUuQSA4b2ICQ&bvm=bv.97949915,d.c2E&psig=AFQjCNEbPVZtDB4YhY1T-LUbNwMtMCtjcQ&ust=1437124178381483

The decision of merging the limits of foreign direct and portfolio investments into a composite cap is essentially a move towards giving companies more flexibility for deciding on the desired mix of foreign investment.

It will also bring in transparency and clarity on the country’s foreign investment policy.

Opposition parties, including the Congress and the Left, have been against the proposal on the ground that portfolio investment is in nature very short-term “hot money” that can leave the country at any time, creating crises of capital outflow.

In this connection, the government said on Tuesday that FDI in the country has seen a 48 percent growth since the launch of the ‘Make in India’ initiative in September last year.

“The FDI growth has been significant after the launch of ‘Make in India’ initiative in September 2014, with 48 percent increase in FDI equity inflows during October 2014 to April 2015 over the corresponding period last year,” a commerce ministry statement said.

In 2014-15, the country witnessed unprecedented growth of 717 percent or $40.92 billion in investments by foreign institutional investors (FIIs), it said.

(IANS)

Click here for reuse options!
Copyright 2015 NewsGram

Next Story

Harsh Penal Proceedings For Illegal Swiss Bank Deposit Holders: Arun Jaitely

A news item has appeared today indicating an increase of money by ‘Indians’ in the Swiss banking system

0
Harsh Penal Proceedings For Illegal Swiss Bank Deposit Holders: Arun Jaitely
Harsh Penal Proceedings For Illegal Swiss Bank Deposit Holders: Arun Jaitely. flickr

Union Minister Arun Jaitley today warned that Indians having illegal deposits in Swiss banks would face harsh penal proceedings under the black money law after Switzerland starts real time sharing of details of accounts from January onwards. Latest data from the Swiss National Bank showed that money parked by Indians in Swiss banks rose over 50 per cent to CHF 1.01 billion (Rs 7,000 crore) in 2017, reversing a three-year downward trend amid India’s clampdown on suspected black money stashed by its citizens overseas.

“A news item has appeared today indicating an increase of money by ‘Indians’ in the Swiss banking system. This has led to misinformed reaction in certain circles raising a query whether the government’s anti-black money steps have yielded results,” Jaitley said in a blog. Noting that Switzerland in financial disclosures was always a reluctant state, Jaitley said the Alpine nation has amended its domestic laws involving all disclosures and entered into a treaty even with India and real time flow of information with regard to Indians would be made. “The flow of information is starting in January, 2019. Any illegal depositor knows that it is a matter of months before his name becomes public and he will be subjected to the harsh penal provisions of the black money law in India,” said the senior BJP leader and an eminent lawyer.

Jaitley said the Alpine nation has amended its domestic laws
Jaitley said the Alpine nation has amended its domestic laws. Flickr

Also read: Under Arun Jaitley corruption grew manifold in DDCA: Bishan Singh Bedi

Further, Jaitley said those who participate in a public discourse must understand these basic facts before expressing an opinion which may be ill-informed. “To assume that all the deposits are per se tax evaded money or that Switzerland in the matter of illegal deposits is what it was decades ago, is to start on a shaky presumption,” he added. (IANS)