Thursday, September 24, 2015

'Indian Government to ease more FDI restrictions'

 'Indian Government to ease more FDI restrictions'
The Indian government is planning to remove some conditions and restrictions in its policy on foreign direct investment (FDI), to attract more of it, Economic Affairs Secretary Shaktikanta Das said on Wednesday.

"The next area we are looking at is with regard to FDI reforms. New sectors have been opened up and sectoral caps have been liberalized but there is a lot more to do," he said at an event organized by business chamber Assocham.

FDI policy has various conditionalities and restrictions, he said. "The effort is to make FDI policy simple and progressive. I won't be able to spell out details because it is work in progress."

This government has relaxed FDI policy norms in the defense, insurance, construction, medical devices and railway sectors. Its 'Make In India' drive is aimed at making the country a global investment hub.

Das said the government would continue with measures to make India an attractive investment destination, without necessarily waiting for new announcements in the annual budgets. He reiterated an earlier forecast that growth in this financial year would exceed 7.5 per cent. In the June quarter, the economy grew at seven per cent.

"Policy initiatives are round the clock, a 24x7 exercise, and it will continue," Das said.

"The direction of these reforms and administrative measures is to strengthen the initiative towards Make in India and, second, to ensure revival of demand by giving a boost to more and more investment," he added.

On start-ups that shift base out of the country due to procedural issues after a few years, Das said an enabling framework is in the works. "It will be spelt out as and when the government takes a decision."

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