Secondly, the BJP’s Bihar failure to Lalu-Nitish combine has been a direct hit on Modi himself since the defeat came despite the prime minister giving his heart out to the campaign in the state, offering Rs 1.65 lakh crore package and using all possible weapons to gain political advantage over the rivals. The Sensex on Tuesday fell below the crucial 26,000-mark due to concerns over the pace of economic reforms after the Bihar poll results.
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The proposed reforms also enhance the limit of Foreign Investment Promotion Board (FIPB) from current Rupees 3000 crore to 5000 crore, which will mean faster clearances of many crucial proposals in all sectors.
‘In the last few months growth in India is being driven by public investment, some private investment and increased foreign direct investment, ‘ Jaitley told a press conference.
Reward youth & 15 sectors will feel. A whole range of FDI proposals have been, in one stroke, shifted from the route of government approval, where, as the DIPP notes, time and energy of investors is wasted, to the automatic route. “And one of the risks is that it’s dependent on foreign investment, and there are issues around the current account deficit”, she added.
In the broadcasting sector, 100 per cent FDI has been allowed in DTH, teleports, mobile TV and cable networks. For example, this week’s measures will make it easier for foreign businesses to win automatic approval for investment plans. 100 per cent FDI under automatic route has been allowed in completed projects for operation and management of townships, malls/shopping complexes and business centres. FDI in FM channels was also increased to 49% through the government route. There are no visible changes to the FDI limits in the core media business and its ownership rules that remain broadly in line with a Nehruvian-era cabinet resolution.
Prime Minister Modi, who was addressing the Business Meeting at London, said the United Kingdom is also the third largest foreign investor in India.
Norms have now been changed to allow limited liability partnerships, downstream investment and approval conditions while allowing investment by companies owned and controlled by Non-Resident Indians (NRIs). A responsive government has the power to generate a positive sentiment which is a precondition to attracting investment. So much of what was before, that involved going to the government, has now been put on an automatic route. At present, foreign investment up to 49 per cent is allowed in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline (SOP).
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In private banks, while FDI limits have been kept unchanged at 74 per cent, FIIs have been allowed to have the entire 74 per cent. A single FII, however, would not be allowed more than 10 per cent in a bank. “Further, it is seen that in certain high-technology segments, it is not possible for the retail entity to comply with the sourcing norms”.
