Revised consolidated FDI policy document on Sept. 30
The government will release the revised consolidated FDI policy paper, a ready reckoner on foreign investment related regulations for overseas investors, on September 30.
"The next edition of Consolidated FDI Policy Circular — Circular 2 of 2010 — will be issued on September, 30, 2010, which will incorporate all the changes effected in FDI policy post issue of Circular 1 of (March) 2010," the Department of Industrial Policy and Promotion (DIPP) said on Friday.
The government had decided to come out with consolidated FDI policy paper summarising all the regulations, including those of FEMA and RBI, for the benefit of foreign investors from March 31, 2010, and revise it every six months.
DIPP, the nodal agency on FDI policy in the industry ministry, has invited public comments on the first consolidated document till August 31. The revised document would contain the change in policy on FDI in tobacco sector, an official said. In May, the government had banned investment in cigarette and cigar manufacturing.
The consolidated document aims at helping foreign investors as it contains all the current regulatory framework and subsumes all FDI policies announced prior to release of the paper. It also has regulations on FDI, contained in FEMA and RBI circulars.
FDI inflows in the country during the first quarter of the fiscal reduced to $5.80 billion from $7.01 billion in the corresponding period of 2009-10. However, a recent Unctad report said that India would emerge as the third largest recipient of FDI for the three-year period ending 2012.
The government is making sustained efforts to make the FDI policy regime more attractive and investor friendly, the official said. The industry ministry has floated discussion papers for increasing the FDI ceiling in defence manufacturing from the current 26 per cent and opening the multi-brand retail sector for foreign investments.
Currently up to 51 per cent FDI is allowed in single brand retail and 100 per cent in wholesale business.
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