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The net Foreign Direct Investment (<keyword id="44528" type="General" weightage="20" keywordseo="fdi" source="Orion">FDI</keyword>) flowing into India reached a 21-month high in October reflecting the strengthening fundamentals of the economy, according to data compiled by the RBI. According to RBI data, the net FDI in India for October stood at $5.9 billion up from $1.55 billion in September. This is the third month in a row to show an increase in net FDI. Around four-fifths of the gross FDI flows into <keyword id="6391506" type="General" weightage="20" keywordseo="equity" source="Orion">equity</keyword> were invested in sectors such as <keyword id="6362048" type="General" weightage="20" keywordseo="manufacturing" source="Orion">manufacturing</keyword>, <keyword id="6354851" type="General" weightage="20" keywordseo="retail" source="Orion">retail</keyword>, <keyword id="6357014" type="General" weightage="20" keywordseo="energy" source="Orion">energy</keyword> and financial services sector. Mauritius, Singapore, Cyprus, and Japan were the leading countries from where FDI flowed into the country, accounting for as much as four-fifths of the total during the month. However, data for the April-October period of the current financial year showed a decline in net FDI inflows to $10.4 billion from $20.8 billion in the same period last year. According to UN ESCAP data released this month, India remains the highest recipient of FDI in 2023 for the second consecutive year amid a slowdown worldwide. Net inflows under external commercial borrowings (ECBs) and non-resident deposit accounts are much higher than last year and outward FDI commitments have also declined leading to higher foreign exchange reserves. India's foreign exchange reserves increased for the fifth week in a row to scale a 20-month high of $615.97 billion as of December 15, according to the latest data released by the RBI. An increase in the foreign exchange reserves helps the RBI to stabilise the rupee when it turns volatile. The RBI intervenes in the spot and forward currency markets by releasing more dollars to prevent the rupee from going into a free fall when it comes under pressure. Any sharp decline in the country's forex kitty leaves the RBI less headroom to intervene in the market to stabilise the rupee.

FDI flows jump to 21-month high in October

The government has permitted <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">foreign direct investment</keyword> (FDI) of up to 74 per cent under the automatic route in the defence sector with a view to attracting overseas investors, according to a press note issued by the DPIIT on Thursday. However, foreign investments in the defence sector would be subject to scrutiny on the grounds of national security and the government reserves the right to review any foreign investment in the sector that affects or may affect national security, the Department for Promotion of Industry and Internal Trade (DPIIT) said in the note. As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry -- 49 per cent under the automatic route, while beyond that government approval was required. According to the Press Note 4 (2020 series): "FDI up to 74 per cent under automatic route shall be permitted for companies seeking new industrial licences". It also said that infusion of fresh investment up to 49 per cent, in a company not seeking industrial licence or which already has government approval for FDI in defence, shall require "mandatory" submission of a declaration with the defence ministry in case change in equity/shareholding pattern or transfer of stake by existing investor to new foreign investor for FDI up to 49 per cent, within 30 days of such change. Proposal for raising FDI beyond 49 per cent from such companies will require government approval, it added. "The decision will take effect from the date of FEMA (Foreign Exchange Management Act) notification," it said. The decision to permit up to 74 per cent FDI in the <keyword id="2377476" type="PERSON" weightage="20" keywordseo="defence-manufacturing">defence manufacturing</keyword> through the automatic route was announced by Finance Minister Nirmala Sitharaman in May while announcing the fourth tranche of the Rs 20 lakh crore stimulus package for the coronavirus-hit economy. In July 2018, the government had relaxed foreign direct investment norms in the defence sector by allowing up to 49 per cent FDI under the automatic route. The move was aimed at boosting domestic industry as India imports about 70 per cent of its military hardware. According to the DPIIT data, defence industries has received FDI equity inflows of USD 9.52 million (Rs 56.88 crore) during April 2000 and March 2020. Under the government route, foreign investors have to take prior approval of the respective ministry/department, while in the automatic route, the investor just has to inform the RBI after the investment is made. Total FDI into India increased by 18 per cent to USD 73.45 billion in 2019-20. SEE ALSO: <a href="https://www.businessinsider.in/sports/news/dailyhunt-app-founders-confirm-ipl-2020-associate-sponsorship/articleshow/78169667.cms">EXCLUSIVE: Dailyhunt founders confirm IPL 2020 associate sponsorship — promise new release for Josh ahead of India’s biggest cricket tournament</a> <a href="https://www.businessinsider.in/stock-market/markets/news/hcl-tech-enters-the-list-of-top-10-most-valued-companies-in-india/articleshow/78165311.cms">HCL Tech enters the list of top 10 most valued companies in India</a> <a href="https://www.businessinsider.in/science/space/news/first-intact-planet-found-circling-a-dead-star-this-jupiter-sized-anomaly-is-in-orbit-rather-than-being-pulled-apart-at-the-seams/articleshow/78166938.cms">First 'intact' planet found circling a dead star — this Jupiter-sized anomaly is in orbit rather than being pulled apart at the seams</a>

Foreign investors can now pump in up to 74 % FDI under automatic route in India's defence sector

New Delhi, The government on Wednesday eased <keyword id="19946825" type="General" weightage="20" keywordseo="foreign-direct-investment" source="keywords">Foreign Direct Investment</keyword> (<keyword id="19946824" type="General" weightage="20" keywordseo="fdi" source="keywords">FDI</keyword>) norms in the space sector by allowing 100 per cent overseas investment in making components for satellites, as part of efforts to attract overseas players and private companies into the segment. The decision was taken at the <keyword id="19901283" type="General" weightage="20" keywordseo="cabinet" source="keywords">Cabinet</keyword> meeting chaired by Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword>. Now, the satellite sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector, according to an official statement. Presently, FDI in the space sector is allowed up to 100 per cent in the area of satellite establishment and operations through government route only. By changing the current policy, the government has allowed up to 74 per cent FDI under automatic route in satellites-manufacturing and operation, satellite data products, and ground and user segments. Beyond this limit, government approval will be required in these areas for FDI, it said. Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Beyond 49 per cent, FDI in these activities would require government approval, it added. Further, up to 100 per cent overseas investments are permitted under the automatic route for manufacturing of components and systems/sub-systems for satellites, ground and user segments. This increased private sector participation would help generate employment, enable modern technology absorption and make the sector self-reliant. It is expected to integrate Indian companies into global value chains. Through the decision, the government seeks to liberalise the FDI policy provisions in the space sector by prescribing easy entry routes and providing clarity for overseas investments in satellites, launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft and manufacturing of space-related components and systems. With this, companies will be able to set up their manufacturing facilities within the country, duly encouraging Make In <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> initiatives of the government.

Govt eases FDI norms in space sector; 100% in making components for satellites

New Delhi, Foreign direct investment (<keyword id="19946824" type="General" weightage="20" keywordseo="fdi" source="keywords">FDI</keyword>) inflows in India declined 13 per cent to USD 32.03 billion in April-December 2023, dragged down by lower infusion in computer hardware and software, telecom, auto, and pharma sectors, according to the latest government data. FDI inflows stood at USD 36.74 billion during the corresponding nine months of the preceding fiscal. Inflows during the October-December quarter of the current fiscal, however, rose by 18 per cent to USD 11.6 billion as against USD 9.83 billion during the same quarter of 2022-23. The total FDI -- which includes equity inflows, reinvested earnings and other capital -- declined by about 7 per cent to USD 51.5 billion during the period under review against USD 55.27 billion in April-December 2022, the data from the Department for Promotion of Industry and Internal Trade (DPIIT) showed. During the nine-month period of this fiscal, FDI equity inflows decreased from major countries, including Singapore, the US, the UK, Cyprus and the UAE. Investments fell significantly from the Cayman Islands and Cyprus to USD 215 million and USD 796 million, respectively, during April-December 2023 as against the two comparative figures of USD 624 million and USD 1.15 billion recorded in the year-ago period. However, inflows increased from <keyword id="19956313" type="General" weightage="20" keywordseo="mauritius" source="keywords">Mauritius</keyword>, the Netherlands, Japan and Germany. Sectorally, inflows contracted in computer software and hardware, trading, services, telecommunication, automobile, pharma and chemicals. In contrast, construction (infrastructure) activities, development and power sectors registered growth in inflows. State-wise, Maharashtra received the highest inflow of USD 12.1 billion during the period. It was USD 10.76 billion in the same period a year ago. Overseas capital inflows in Karnataka plunged to USD 3.6 billion in April-December 2023 from USD 8.77 billion in the same period of previous fiscal year. Other states/Union Territories where FDI dipped during the period under review included Delhi, <keyword id="19896558" type="General" weightage="20" keywordseo="tamil-nadu" source="keywords">Tamil Nadu</keyword>, West Bengal, <keyword id="19898913" type="General" weightage="20" keywordseo="rajasthan" source="keywords">Rajasthan</keyword> and <keyword id="19904807" type="General" weightage="20" keywordseo="haryana" source="keywords">Haryana</keyword>. The inflow, however, recorded a positive growth in Gujarat, Telangana, and Jharkhand. An official has earlier stated that hardening interest rates globally and worsening geopolitical situation impacted FDI inflows. FDI equity inflows into India declined 22 per cent to USD 46 billion in 2022-23.

FDI inflows decline 13% to $32 billion in April-December 2023

The government has approved FDI worth around Rs. 4,000 Crores for four pharma and medical devices firms. 
 
The accepted list includes Torrent Pharmaceuticals and Biocon's Syngene. However, Strides Arcolab was not allowed to issue shares to non-resident and resident equity shareholders of Shasun Pharmaceuticals. Three other drug companies’ applications have been delayed. 
 
The government’s decision to allow Torrent Pharmaceuticals' Rs. 3,000 Crores proposal for increasing FII limit to 35% from 13.09% was the biggest today. Syngene's proposal to raise FDI of about Rs. 930 Crores by raising the foreign investment to 44% from the current 10% was the second biggest in the pharmacy sector today. 
 
Others given approval are Stericat Gut Strings Pvt Ltd for FDI of Rs 43.52 Crores as it wants to sell 77.5% of its shares to Groupe Peters Surgical LLC 
 
Ordain Health Care Global Pvt Ltd was also allowed FDI of Rs. 23.34 Crore to buy assets from Alkems Fertica. 
 
The list whose proposals were delayed includes Celon Laboratories, Shantha Biotechnics and Sparsha Pharma International. 
 
(Image credit: Indiatimes)

Whopping Rs. 4,000 Crores FDI boost for Indian Pharma

<keyword id="6354553" type="COMPANY" weightage="100" keywordseo="real-estate">Real Estate</keyword> sector has been stagnant and unregulated for years now. Rising prices of property, delayed construction, no clarity on Foreign Direct Investment and REITS, ghost buyers are some of problems crippling the growth of the sector. But with the various ambitious projects announced by the new Modi Government there’s a silver lining. As per recent government data, economic growth reached 7.4% in the second quarter of the current financial year, riding on a spike in manufacturing and a pickup in investment. 

	Where it stands?
 Globally positioning India as an investment destination and improving India’s diplomatic and trade relation, Narendra Modi’s foreign stints have helped India attract more <keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword>. From the nations he visited during the financial year 2014-15, India received FDI of USD 19.78 billion. Moreover, FDI in India increased by 27% in 2014-15 to USD 30.93 billion, said Anuj Puri, Chairman and country head at JLL India in his blog. But a recent <keyword id="6355001" type="CITY" weightage="100" keywordseo="FICCI">FICCI</keyword> survey of the year 2015 (Impact of FDI reforms in the Indian real estate sector) shows how disoriented the sector still is. Though there has been overall growth in FDI in the sector, FDI in construction development sector has declined over the past few years. The following table shows that. 

	
 

	Overall sentiment happy
 Still revival hopes are high! The real impact of latest FDI liberalisation measures on foreign <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword> in Indian real estate will be reflected over a period of time, the industry feels, as per the survey. 

	1. Industry is happy and satisfied with current FDI reforms in construction development sector 
 

	Majority are happy with the recent steps of the Central Government and are satisfied with the policy development. 
 

	2. Increased confidence and optimism in industry towards future flow of FDI in real estate 
 Industry has shown high level of confidence and optimism towards future flow of <keyword id="136566" type="UNKNOWN" weightage="100" keywordseo="foreign-capital">foreign capital</keyword> into realty sector. They feel that FDI reform measures will certainly increase flow of FDI into realty sector in coming months. 

	3. Commercial &amp; Retail and Residential real estate will gain significantly from the liberalisation of FDI in the sector
 

	4. 100% FDI under automatic route in completed projects
 

	100% FDI under automatic route in completed projects for operation and management of townships, malls/shopping complexes and business centres is a significant step taken by the Government, the industry feels.
 

	What more should be done in the upcoming <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">budget 2016</keyword>?
 

	1. Quick implementation of the Real Estate Regulatory Bill (RERA) to enable the <keyword id="46631" type="UNKNOWN" weightage="100" keywordseo="Realty-market">realty market</keyword> to attract FDI 

	2. Government of India should bring more clarity over the entry and exit norms and processes to be followed by investors. 
 

	3. Both Centre and State must work together to ensure removal of bottlenecks for faster implementation of reform measures for foreign investments in real estate. 
 

	4. Government of India could also consider a reduced lock-in-period applicable for FDI investments from 3 years currently to 1-2 years to further enhance investor interests. 
 

	The real estate industry is maturing. There is a wedge between demand and supply of housing. However, with increased market transparency, this demand/supply mismatch can offer immense opportunities for developers and investors alike. But a well regulated and consolidated industry is not a near future dream. 
	 
	(Image credits: FICCI, indiatimes)

Budget 2016: Impact of FDI in real estate sector and future expectations

NEW DELHI: The <keyword id="6355512" type="ORGANIZATION" weightage="20" keywordseo="Union-Cabinet">Union Cabinet</keyword> on Wednesday allowed foreign investment in the Railways for the first time and raised limit for such investment in the defence sector, steps intended to raise funds for expansion of the Railways and encourage domestic manufacture of arms. 
 
100 per cent foreign investment in railway infrastructure projects will be allowed while in the case of defence the limit has been raised to 49 per cent from the current 26 per cent, subject to the Indian owners exercising management control. 
 The <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> hike in defence is intended to cut imports by indigenising defence production as India is one of the world’s largest arms importers. 
 "It is a composite cap, incorporating all forms of foreign investment, FDI, FII, FPI, NRI, etc," said a <keyword id="6542458" type="POSITION" weightage="20" keywordseo="Government-official">government official</keyword> confirming that the proposals has been cleared. Experts did not seem impressed with the cautious stance of the <keyword id="6360789" type="ORGANIZATION" weightage="20" keywordseo="Modi-Government">Modi government</keyword> on defence. 
 
"Good development, but not great. Round one has gone to protectionist forces. 49 per cent is the same as 26 per cent technically and hence may not open the investment floodgates," said Amber Dubey, Partner and India Head of Aerospace and Defense at global consultancy KPMG. 
 
"We hope better judgment prevails and we have the FDI limit enhanced to 74 per cent later this year," he added. Official notifications giving effect to changes will be issued soon, after the minutes of the cabinet meeting are finalised. 
 Foreign investment in defence will be though the approval route, implying it will have to be cleared by the Foreign Investment Promotion Board (FIPB). Though the 49 per cent cap will be general rule for the defence sector, 100 per cent overseas ownership will be allowed in case the <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword> comes bundled with state of the art technology. Such investment proposals will have to be cleared by the Cabinet Committee on Security (CCS). 
 
In companies with a 49 per cent foreign holding, more than one Indian company will be allowed to hold the 51 per cent share, unlike the present norm that mandates that a single Indian entity should own and control the entire 51 per cent, a move that will encourage more domestic players to enter the sector. 
 
In case of Railways, 100 per cent FDI will now be allowed in railway infrastructure segments such as electrification, signalling, high speed and suburban corridors. 100 per cent FDI will also be allowed through the Special Purpose Vehicle route to provide last mile connectivity to ports and mines. Further, some railway operations have also been partially opened up to foreign investment. 
 FDI is now allowed in PPP projects, suburban corridors, high speed train systems, and dedicated freight lines. Estimates suggest that the opening of railways to foreign <keyword id="47916" type="UNKNOWN" weightage="20" keywordseo="invest">invest</keyword>ors will add 1-1.5 percentage points to the overall GDP growth. China and Japan are keen to invest in the railways sector. 
 
As a result of these changes, railways transport will be removed from the list of prohibited sectors in the consolidated FDI policy.

Indian Cabinet Approves Raising FDI Cap In Defence To 49 Per Cent, Opens Up Railways

Going by the data presented by Minister of State for Defence Rao Inderjit Singh in parliament on Tuesday, the <keyword id="6412360" type="UNKNOWN" weightage="20" keywordseo="Defence-Sector">defence sector</keyword> stood at the bottom of the list of sectors that received foreign investment this year with merely Rs 56 lakh in its kitty. 
 This is despite the persistent government efforts to market India as a defence manufacturing hub ever since last year when the norms were eased by the <keyword id="65795" type="ORGANIZATION" weightage="20" keywordseo="BJP-government">BJP government</keyword> last year in August, including FII <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword> upto 24 percent on automatic route. 
 This dismal <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> inflow was the reason why another set of big changes was announced by the government in November in defence FDI. The changes included FDI upto 49 percent through automatic route, permissions to be taken from FIPB beyond 49 percent, besides FVCI and portfolio being also permitted 49 pc through automatic route. 
 However, while the government made it easier for foreign investors to venture into the defence <keyword id="6395867" type="UNKNOWN" weightage="20" keywordseo="manufacturing-sector">manufacturing sector</keyword>, it shied away from being liberal on the FDI limit, capping it to 49 percent under the new automatic process, a bone of contention for investors who desire a controlling stake. 
 
Other significant sectors like Glue and Gelatin, Dye Stuff and Scientific Instruments beat the investments into the defence sector exponentially. 
 
(image credit: BCCL)

Government fails to attract FDI in Defence Industry, only Rs 56 lakh since Sept last year

The government is likely to give nod to a higher limit of foreign direct investment (<keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword>) in <keyword id="6360676" type="CITY" weightage="100" keywordseo="Railways">railways</keyword> and <keyword id="32723" type="COMPANY" weightage="100" keywordseo="Defence">defence</keyword>. However, the plan to allow FDI in e-commerce has been put on hold. 
 
FDI up to 100% would be allowed under the automatic route in railway infrastructure projects, including projects like high-speed trains, sub-urban and dedicated freight corridors under public-private partnership (PPP) mode. 
 However, in strategic border areas, companies may need prior permission from the <keyword id="1382761" type="ORGANIZATION" weightage="100" keywordseo="Foreign-Investment-and-Promotion-Board">Foreign Investment and Promotion Board</keyword> (FIPB). 
“Due to security concerns in border areas, there is a view that clearance from the ministry of home affairs should be taken,” said an official. 
 
In defence sector, the FDI limit of 26% would be raised to 49%. 
 The <keyword id="120170" type="ORGANIZATION" weightage="100" keywordseo="Cabinet-Committee-on-Economic-Affairs">Cabinet Committee on Economic Affairs</keyword> has already approved 49% FDI in the insurance sector. 
 
But the government is unlikely to allow FDI in e-commerce as of now as it is of the view that it could impact domestic players.

FDI In Defence, Railways To Be Increased

Foreign direct investment (<keyword id="44528" type="General" weightage="100" keywordseo="fdi" source="Orion">FDI</keyword>) into <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> declined by 15 per cent to USD 36.75 billion during the April-December this fiscal, according to the latest Department for Promotion of Industry and Internal Trade data. The FDI inflows stood at USD 43.17 billion during the corresponding period of the previous year. The total FDI inflows, which includes equity inflows, re-invested earnings and other capital, declined to USD 55.27 billion during the nine months of the current fiscal year as against USD 60.4 billion in the year-ago period. During April-December 2022-23, <keyword id="6356662" type="General" weightage="20" keywordseo="singapore" source="Orion">Singapore</keyword> emerged as the top investor with USD 13 billion FDI. It was followed by Mauritius (USD 4.7 billion), the US (about USD 5 billion), the <keyword id="6358356" type="General" weightage="50" keywordseo="uae" source="Orion">UAE</keyword> (USD 3.1 billion), the Netherlands (USD 2.15 billion), <keyword id="6355311" type="General" weightage="20" keywordseo="japan" source="Orion">Japan</keyword> (USD 1.4 billion), and Cyprus (USD 1.15 billion), the data showed. The computer software and hardware sector attracted the highest inflows of USD 8 billion during the nine-month period of this fiscal. It was followed by services (USD 6.6 billion), trading (USD 4.14 billion), chemicals (USD 1.5 billion), automobile industry (USD 1.27 billion) and construction (infrastructure) activities (USD 1.22 billion). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/hot-temperature-to-heat-up-prices-reduce-wheat-yield-crisil/articleshow/98153310.cms">Hot temperature to heat up prices, reduce wheat yield: CRISIL</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/sell-off-by-fiis-does-not-impact-markets-retail-participation-is-more-important-says-sebi-executive-director/articleshow/98153452.cms">Sell off by FIIs does not impact markets; retail participation is more important, says SEBI executive director</a>

You Searched For "FDI" and got 10 results

FDI flows jump to 21-month high in October

IANS

Foreign investors can now pump in up to 74 % FDI under automatic route in India's defence sector

PTI

Govt eases FDI norms in space sector; 100% in making components for satellites

PTI

FDI inflows decline 13% to $32 billion in April-December 2023

PTI

Whopping Rs. 4,000 Crores FDI boost for Indian Pharma

BI India Bureau

Budget 2016: Impact of FDI in real estate sector and future expectations

Usha Rani Das

Indian Cabinet Approves Raising FDI Cap In Defence To 49 Per Cent, Opens Up Railways

ET

Government fails to attract FDI in Defence Industry, only Rs 56 lakh since Sept last year

BI India Bureau

FDI In Defence, Railways To Be Increased

BI India Bureau

FDI equity inflows decline 15% to USD 36.75 billon in Apr-Dec FY23

PTI

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