Tuesday, December 1, 2020
Home India Cabinet nod for merging FDI, FII limits

Cabinet nod for merging FDI, FII limits

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)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,779FollowersFollow

Most Popular

Spending Long Time On Phone Is Not Related To Poor Mental Health

If your kids are spending hours on smartphones, don't panic. In a new study, researchers have found that time spent on the smartphone was...

A Plant-Based Diet Improves Cardiometabolic Risk Factors In Overweight Individuals

A plant-based diet boosts after-meal burn, leads to weight loss, and improves cardiometabolic risk factors in overweight individuals, say researchers. "Over the course of years...

India’s Manufacturing Sector Lost Growth Momentum In November

India's manufacturing sector lost growth momentum in November, as a slower order flow and Covid-related restrictions impacted output. Consequently, the headline seasonally adjusted IHS Markit...

4 Ways To Maintain Communities In Isolation

By Joniel Suezo Due to the on-going lockdown restrictions and the risk of COVID-19, many of us have spent a lot more time alone this...

Report: Indians Spend Rs. 2,400 On Average For Servicing Their Smartphones

When it came to out-of-warranty smartphones, customers in India spend Rs 2,400 on average on servicing their devices, a new report revealed on Tuesday. One in...

Indian Tunes At The Grammy Award Nominations This Year

Amid all the noise about snubs and transparency, there are a few Indian tunes that have struck the right note at the Grammy Award...

Revamp Your Workspace By These Seven Simple Step

In the era of social distancing where work from home has become the new norm, establishing a work-life balance can be tricky especially when...

A Tribute To India’s Textile Heritage- Showcasing India’s Textile Arts Digital Museum

Erstwhile royal families and historic properties have come together to pay tribute to India's textile heritage by working with karigars (or local artisan designers)...

Recent Comments