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Chinese smartphone maker Xiaomi’s future in India is in the hands of a special panel, which has been set up by the government to decide whether Xiaomi’s proposal meets the "<a href="http://www.businessinsider.in/Not-everything-can-be-termed-state-of-the-art-says-Indian-government-to-facilitate-FDI/articleshow/51628211.cms">cutting edge technology</a>" condition. Only if the panel says yes that Xiaomi will be allowed to set up stores in India without the mandatory domestic sourcing, as per the <a href="http://www.businessinsider.in/New-FDI-rules-to-upset-online-shoppers-no-more-promotional-offers-and-cash-backs/articleshow/51644272.cms">new FDI rules</a>. 
 
The new rules say that companies bringing cutting edge and state-of-the-art technology to India will be allowed to open single-brand outlets without 30% compulsory sourcing of materials locally subject to government approval. 
 
To make good use of this opportunity, Xiaomi had earlier this month applied for single-brand retail under the state-of-the-art category, seeking permission to forego the 30% sourcing norm for a range of its products including Wi-Fi amplifiers, Bluetooth speakers and power banks. 
 
The panel comprises of three members, secretary of DIPP, one member of the NITI Aayog, and a representative of the administrative ministries including telecom and information technology. It has been formed by government to define cutting edge technology. The panel will now consider all such proposals submitted under this category on a case to case basis. 
 
As per a senior government official, "Any technology which has never been made before in India and cannot be replicated is worthy of being considered under the cutting edge definition." 
 
Besides Xiaomi, Apple had also applied for a similar licence, and the application is being <a href="http://www.businessinsider.in/Apple-to-open-stores-in-India/articleshow/51938335.cms">considered for approval </a>by the government. 
 
<a href="http://www.livemint.com/rf/Image-621x414/LiveMint/Period1/2014/07/16/Photos/xiaomicorp--621x414.jpg">Image source</a>

Xiaomi's future in India is at stake

<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

<ul><li>The latest <keyword id="722308" type="PERSON" weightage="20" keywordseo="World-Investment-Report">World Investment Report</keyword> showed India dropping a spot to 10th, in the list of top FDI receiving countries.</li><li>India’s witnessed 6% growth in FDI, to reach $42 billion in 2018.</li><li>Global FDI inflows slipped by 13%, from $1.5 trillion to $1.3 trillion, South Asia witnessed 3.5% increase in FDI inflows.</li><li>China, which retained the number two position, received the highest foreign inflows among the developing countries at an all time high of $139 billion, a growth of 4%. </li></ul>Despite a 6% surge in its <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">Foreign Direct Investment</keyword> (FDI) inflow in 2018, India slipped a spot in the list of countries receiving highest FDI, to 10th. The latest <a href="https://unctad.org/en/pages/DIAE/World%20Investment%20Report/WIR-Series.aspx">World Investment report</a> of the United Nations Conference on Trade &amp; Investment (<a href="https://unctad.org/en/Pages/Home.aspx">UNCTAD</a>), an organization that aims at maximizing trade, investment and development opportunities of developing countries. The increase in FDI inflows is being attributed to manufacturing, communication and financial services sectors, which were the top three FDI recipients in India. Growth in cross-border mergers and acquisitions -- from $23 billion in 2017 to $33 billion in 2018 -- was primarily due to retail trade, which includes e-commerce, and telecommunication, said the report. The $16 billion<a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmart-acquires-flipkart-for-16-bn-worlds-largest-ecommerce-deal/articleshow/64095145.cms"> acquisition </a>of Flipkart by Walmart, and telecommunication deals worth $2 billion involving Vodafone and American Tower, were among the major deals this year. The report also highlighted the changes to India’s FDI policy, which it termed as “restrictive.” In February 2019, India introduced changes to its e-commerce sector where it banned foreign companies to sell their own products in e-commerce marketplace companies like Amazon. Global FDI slowdown Global FDI flows fell by 13% in 2018 from $1.5 billion in 2017 to $1.3 billion in 2018, which is the third consecutive annual decline, according to UNCTAD’s World Investment Report. The contraction was largely precipitated by United States multinational enterprises (MNEs) repatriating earnings from abroad, making use of tax reforms introduced by the country in 2017, designed for that purpose. Developed countries were the worst hit by the earnings repatriation, where flows fell by a quarter to $557 billion-levels last seen in 2004. South Asia surges ahead As global FDI inflows slump down, South Asia witnessed a <a href="https://economictimes.indiatimes.com/news/economy/indicators/fdi-flows-to-india-grew-6-in-2018-to-42-bn-un-report/articleshow/69761999.cms?utm_source=ETTopNews&amp;utm_medium=HP&amp;utm_campaign=TN&amp;utm_content=23">growth</a> of 3.5% to $54 billion in FDI inflows. "All subregions in developing Asia are expected to receive higher inflows. Prospects are underpinned by a doubling in value of announced greenfield projects in the region, suggesting continued growth potential for FDI," it said while sounding a note of caution on global uncertainties. It said uncertainties stemming from global trade tensions could weigh on the mood in the region.

India has slipped to the 10th spot in attracting foreign direct investment

New Delhi, Feb 26 () Goods procured from units in special economic zones (SEZs) by single brand retailers, owned by foreign companies, would qualify for meeting the mandatory 30 per cent local sourcing conditions, according to a government clarification. According to the current foreign direct investment (FDI) policy on single brand retail trading, 100 per cent overseas investments are allowed in the sector. But sourcing of 30 per cent of the value of goods procured is mandatory from India for such companies having FDI beyond 51 per cent. The government has received representations from various business entities seeking clarification whether sourcing of goods from units located in SEZs would qualify as sourcing from India, as per FDI policy. "As regards, sourcing of goods from units located in SEZs in India, it may be clarified that sourcing of goods from such units would qualify as sourcing from India for the purpose of 30 per cent mandatory sourcing from India for proposals involving FDI beyond 51 per cent, subject to SEZ Act, 2005," according to the clarification. However, it said that goods which are proposed to be sourced by a single brand retailer from SEZ units will have to be manufactured in India. It added that compliance with all the conditions enumerated in the FDI policy and as notified under FEMA (Foreign Exchange Management Act) would continue to be the responsibility of manufacturing entity. SEZs, developed as export hubs, are treated as foreign territory in terms of customs laws. Procurement of goods and services from units in these zones are treated as imports. In February 2006, the government for the first time opened the sector for foreign players by allowing 51 per cent FDI. In January 2012, the cap was raised to 100 per cent -- up to 49 per cent through automatic route and beyond that with the government approval. In January 2018, the government allowed 100 per cent FDI in the sector, permitting foreign players in single brand retail trade to set up own shops in India without government approval. FDI into India grew by 15 per cent to USD 26 billion (about Rs 1,85,000 crore) during April-September 2019-20. RR RVK

Goods procured from SEZs by single brand retailers to qualify for meeting local sourcing norms

It’s been a week when the media has bashed the <a href="http://www.businessinsider.in/searchresult.cms?query=modi">Prime Minister Modi</a> for spending crore of rupees in his <a href="http://www.businessinsider.in/searchresult.cms?query=foreign+visits">foreign visits</a>. Now there’s some good vibes coming from the same quarters on the same topic. 
 
Ever since Modi started his foreign trips, India has become a hot destination for Foreign Direct Investments (FDI). India has received $19.78 billion (Rs 1.3 lakh crore) in FDI in 2014-15 from a dozen major FDI source countries that Modi has visited since taking over in May last year, says a news report by The Economic Times. This accounts for nearly two-thirds of the $30.93 billion FDI the country received in the fiscal year, which was 27 % more than the year before. 
 
After the <a href="http://www.businessinsider.in/searchresult.cms?query=Make+in+India">Make in India programme</a> was launched in September last year, it’s raining FDI. Data from Department of Industrial Policy and Planning shows the inflows have jumped 48% between October 2014 and April 2015 over the year-earlier period. 
 
"There has been some questions about the Modi government's performance when it comes to pace of reforms and ease of doing business," a foreign diplomat in Delhi said. But a government official from Japan, one of the countries that Modi visited and from where he got a huge investment commitment, told the ET there was no major reason to be upset about since Modi became the PM. 
 
Modi has visited 27 countries since last year. <a href="http://www.businessinsider.in/searchresult.cms?query=japan">Japan</a> has committed to invest about $35 billion in five years and South Korea plans to invest $10 billion. <a href="http://www.businessinsider.in/searchresult.cms?query=china">China</a> has assured $20 billion in the next five years, while France has announced $2 billion euros ($2.26 billion). The UAE, which the PM visited last month, has assured to pump in money for India's $75-billion infrastructure fund. The UK has launched a programme for investments here ahead of Modi's planned trip in November and Germany is expected to make some announcements related to the Make in India initiative during Chancellor Angela Merkel's visit to New Delhi in the first week of October. 
 
 
(image: Reuters)

Consequence of Modi’s foreign visit: it’s raining investments

New Delhi, Dec 25 () The Department for Promotion of Industry and Internal Trade (DPIIT) is expected to soon issue a clarification on the issues raised by certain stakeholders over the government's decision to permit 26 per cent FDI in digital media sector, according to sources.
Certain industry players and experts have stated that the move to cap foreign direct investment (FDI) in digital media sector to 26 per cent throws up questions that need clarifications as some of those who were looking to raise funds could be restricted.
There are mainly two issues -- how the FDI policy of the sector would treat news aggregators and what would happen to those digital media companies where overseas investment is over 26 per cent -- that need clarification.
On these matters, the department is expected to issue clarification soon, a source said.
The DPIIT has already taken views of the Information and Broadcasting Ministry on the issue.
Deloitte India Partner Jehil Thakkar had said that clarity was needed on how to treat cases of television broadcasters that stream news online, but are allowed 49 per cent FDI.
"What happens to those, whether they qualify under 26 per cent or 49 per cent (FDI)? What happens to news websites which are 100 per cent foreign entity?" he said.
Internet and Mobile Association of India too had sought clarification on the issue.
In a representation to the DPIIT, it stated that the decision will have impact on startup ecosystem as continued FDI is critical to enable Indian digital media startups to achieve global scale.
"Several foreign strategic intermediaries have set up their operations in India, as digital media was categorized as 100 per cent FDI under the automatic route. A clarification on the non-applicability of the new FDI measure would be critical for them to continue making massive investments in India," it added. RR BAL

DPIIT to soon issue clarification on 26 pc FDI in digital media sector

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

Ratings agency Moody’s said <a href="http://www.businessinsider.in/searchresult.cms?query=prime+minister+narendra+modi&amp;sortorder=effectivedate">PM Narendra </a><a href="http://www.businessinsider.in/searchresult.cms?query=prime+minister+narendra+modi&amp;sortorder=effectivedate">Modi</a>’s ‘<a href="http://www.businessinsider.in/searchresult.cms?query=make+in+india&amp;sortorder=effectivedate">Make in India</a>’ initiative is bearing fruits and there is ample proof. 
 
Moody’s stated the net <a href="http://www.businessinsider.in/searchresult.cms?query=fdi&amp;sortorder=effectivedate">Foreign Direct Investment</a> (<keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword>) inflows hit an all-time high at $3 billion in early 2016 since 2004. 
 
The basic balance (the sum of the current account balance and net FDI) returned to a surplus in 2015 after being in deficit from 2003 to end-2014. 
 "The rise in FDI points to stronger investor interest in India on the back of robust economic growth. Higher inflows also suggest that recent government policies, such as efforts to liberalize foreign investment limits in several sectors and the '<keyword id="6354869" type="UNKNOWN" weightage="20" keywordseo="make-in-India">Make in India</keyword>' initiative, are bearing fruit," stated the ratings agency in its report. 
 
Moody’s said that development initiatives such as building industrial corridors, setting up investment &amp; manufacturing zones and smart cities will further enhance investment inflows. 
 
"In particular, flows into the manufacturing sector are likely to accelerate as the government seeks to boost the sector's share of <a href="http://www.businessinsider.in/searchresult.cms?query=gdp&amp;sortorder=effectivedate">gross domestic product</a> (<keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword>) to 25% by 2022," the report added. 
 
"The strength of inflows reflects India's relatively strong growth prospects and government efforts to liberalize foreign investment regulation. 
We expect FDI inflows to continue to rise. Increasing FDI flows provide a stable source of financing that will help to mitigate India's external financing risks," the ratings agency said in a statement.

You Searched For "FDI India" and got 8 results

Xiaomi's future in India is at stake

BI India Bureau

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

Usha Rani Das

India has slipped to the 10th spot in attracting foreign direct investment

BI India Bureau

Goods procured from SEZs by single brand retailers to qualify for meeting local sourcing norms

PTI

Consequence of Modi’s foreign visit: it’s raining investments

BI India Bureau

DPIIT to soon issue clarification on 26 pc FDI in digital media sector

PTI

FDI flows jump to 21-month high in October

IANS

Moody’s gives thumbs up to Make in India as FDI on all-time high

BI India Bureau

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