7/17/13

Govt liberalises FDI limits in 12 sectors, including telecom : FDI in Retail, News - India Today

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INDIA TODAY ONLINE NEW DELHI, JULY 16, 2013 | UPDATED 23:46 IST

Govt liberalises FDI limits in 12 sectors,

including telecom

Type Y

TAGS: Foreign direct investment | FDI | Government | Defence | Telecom | 100 per cent FDI in telecom
Picture for representation. Photo: Danish
Siddiqui/Reuters
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The Manmohan Singh government has set off another round of economic reforms with big hikes in
foreign direct investment caps. Stepping into a political minefield, the government has changed FDI limits
in as many as twelve sectors.
The Government on Tuesday liberalised FDI limits in twelve sectors, including telecom and defence.
Paving way for fresh investments in telecom companies, the government cleared 100 per cent FDI in
telecom sector. To boost the sagging economy, the government also raised FDI in defence sector from 26
per cent to 49 per cent. But the hike comes with some conditions. 49 per cent will only be allowed with
state-of-the art technology transfer.

indiatoday.intoday.in/story/government-foreign-direct-investment-defence-telecom/1/291640.html

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7/17/13

Govt liberalises FDI limits in 12 sectors, including telecom : FDI in Retail, News - India Today

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FDI in 4 other sectors - gas refineries, commodity exchanges, power trading and stock exchanges have
been allowed via the automatic route.
In the contentious insurance sector, it was decided to raise the sectoral FDI cap from 26 per cent to 49
per cent under automatic route under which companies investing do not require prior government
approval. A Bill to raise FDI cap in the sector is pending in the Rajya Sabha.
"Consensus" on raising FDI limits in some sectors and relaxing the route in others was arrived at a meeting
Prime Minister Manmohan Singh took with his key ministers, Commerce and Industry Minister Anand
Sharma said.
In a surprise decision, civil aviation and media sectors have been left untouched.
indiatoday.intoday.in/story/government-foreign-direct-investment-defence-telecom/1/291640.html

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7/17/13

Govt liberalises FDI limits in 12 sectors, including telecom : FDI in Retail, News - India Today

It was decided to allow 49 per cent FDI in single brand retail under the automatic route and beyond
through the Foreign Investment Promotion Board (FIPB).
In case of PSU oil refineries, commodity bourses, power exchanges, stock exchanges and clearing
corporations, FDI will be allowed up to 49 per cent under automatic route as against current routing of
the investment through FIPB.
The decisions taken on Tuesday were based on recommendations of Mayaram Committee which had
suggested relaxing investment caps in about 20 sectors, but the meeting approved only in 12.
In basic and cellular services, FDI was raised to 100 per cent from current 74 per cent. Of this, up to 49
per cent will be allowed under automatic route and the remaining through FIPB approval.
A similar dispensation would be allowed for asset reconstruction companies and tea plantations.
FDI of up to 100 per cent was allowed in courier services under automatic route.
Earlier, similar amount of investment was allowed through FIPB route. In credit information firms 74 per
cent FDI under automatic route would be allowed.
Ironically, the approvals have come on the day when South Korean steel major Posco announced
withdrawal from its Karnataka project. The project was a big FDI victory for the government with as
much as 530 crore dollars expected to flow in the next couple of years. But red-tapism, assisted by local
protests have forced the company out. It will however, continue with its Odisha investments.
Posco's exit has added to the government's headache. FDI has been falling steadily in the past few years.
2011-12 was seemingly an aberration.
Reasons for falling FDI inflows are simple. Foreign investors are worried about the rupee fall. But the
major concerns are unstable policies and political uncertainty in the country.
- With PTI inputs
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Posted by: Raghubir Singh

July 17, 2013

Instead of increasing the cap to 4 9 % in panic m ode-Gov t should hav e assessed the achiev em ents so far with 2 6 %
FDI in addressing to our defence needs in critical areas. Let us not forget that India has been m ost lucrativ e &
v irtually captiv e m arket for arm s exporters so far. Any other nation with our size & resources would hav e gone
whole hog rev erse and re-engineered the im ported weapon sy stem s tailored to our specific requirem ents. But

Dhoni'
friend
dies du
pancre

unfortunately we hav e been im porting ev en duds & sy stem s not suited to our needs with our ey es apparently
intentionally shut? Sadly we hav e been underm ining our own research & production in defence sectors-otherwise
nothing explains our crusade against our own achiev em ents. Since FDI in defence is on case to case basis-let us
begin in critical areas like say gas turbine & not joint m isadv entures in MLRS or assault rifles which we can
m anage ourselv es. One clause with increased FDI lim it should be export obligation of locally m anufactured
defence sy stem s which would acquire com petitiv e edge with our lower production costs.
Repl y

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Posted by: Satish Chandra
July 17, 2013

Bollywood
Dia Mirza to marry beau Sahil
Sangha next year

The CIA keeps deleting m y com m ent. I am reposting it. India's gov ernm ent is a proxy for the CIA. The
requirem ent, put in place by Manm ohan Singh, for m id-career Indian civ il serv ants (sending Indian m ilitary
Celebrities
officers for training to the United States has the sam e purpose)
go to U.S.
univ
ersities for training so their future
Poonam to
Pandey's
nude
photo
career prospects, prom otions, etc. are controlled by Amleaked
ericans
is m eant to m ake India's gov ernm ent as a proxy for
online
the CIA m ore perfect. There has been a long-standing requirem ent in Am erican and British univ ersities that to
receiv e a Ph.D. degree from them , Indians -- this included Manm ohan Singh -- hav e to agree to work for Am erican
or British intelligence agencies. All politicians are controlled by the CIA and deserv e death. The world's greatest
scientist and India's legitim ate ruler -- Satish Chandra -- has been sy stem atically suppressed using 2 4 -hour
satellite surv eillance for the past 3 6 y ears. IndiasLegitim ateRulerSatishChandraDOTblogspotDOTcom 8:4 0pm
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Posted by: Satish Chandra

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4/6

7/17/13

Govt liberalises FDI limits in 12 sectors, including telecom : FDI in Retail, News - India Today

July 17, 2013

The CIA keeps deleting m y com m ent. I am reposting it. India's gov ernm ent is a proxy for the CIA. The
requirem ent, put in place by Manm ohan Singh, for m id-career Indian civ il serv ants (sending Indian m ilitary
officers for training to the United States has the sam e purpose) to go to U.S. univ ersities for training so their future
career prospects, prom otions, etc. are controlled by Am ericans is m eant to m ake India's gov ernm ent as a proxy for

Beckh
royal b
named
"David's
it's a bo
he said

the CIA m ore perfect. There has been a long-standing requirem ent in Am erican and British univ ersities that to
receiv e a Ph.D. degree from them , Indians -- this included Manm ohan Singh -- hav e to agree to work for Am erican
or British intelligence agencies. All politicians are controlled by the CIA and deserv e death. The world's greatest

Find us

scientist and India's legitim ate ruler -- Satish Chandra -- has been sy stem atically suppressed using 2 4 -hour
satellite surv eillance for the past 3 6 y ears. IndiasLegitim ateRulerSatishChandraDOTblogspotDOTcom

Repl y

AbuseWord | Share

Posted by: Babu Krishnan

July 17, 2013

Great news and welcom e change. This is grand opening of the closed m inds and the required rem ov al of constant
re-tapes and eternal but created obstacles to India's growth and future. Lets all m ake this round of liberalizations
work for the com m on good, by keeping our laser focus on env iro-friendly green dev elopm ents

Repl y

AbuseWord | Share

Posted by: Babu Krishnan

July 17, 2013

The control and perm it RAJ which were supposed to be rem ov ed and m odified has com e around to realize the truth
of the 2 1 st century . Without easier access to technology , infrastructure and courageous and non-corruptible
Gov ernm ent forces, the gradual easing of holding norm s, can only act as sm all window of greater opportunities.
How well we utilize the rem ov al of so m any red-tape "babuism s" will only be prov en step by step and the increased
open m arket philosophies. But the stage is now well set for excellent future, and m ust be welcom ed by all

Repl y

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Posted by: Ashok R.Prabhu

July 16, 2013

The exit of the South Korean steel m aker Posco from its Karnataka Project is a big setback for the State and is a sad
com m entary on the state of affairs regarding delay in decision- m aking.The state lost a Golden Opportunity to
im prov e the em ploy m ent as well as im prov e its rev enue.
Repl y

AbuseWord | Share

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7/17/13

Govt liberalises FDI limits in 12 sectors, including telecom : FDI in Retail, News - India Today

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