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    News
    All› News and Press Release › News and Press Release - 2011
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    December 29, 2011
    Wholesale Price Indices for Primary Articles and Fuel & Power in India (Base: 2004-05 = 100) Review for the week ended 17th December, 2011 (26 Agrahayana, 1933 Saka) .
    Show AI Summary
    Wholesale price inflation: Primary articles eased while fuel and power inflation remained elevated, reflecting commodity price shifts.
    Wholesale Price Index data for the week ended 17 December 2011 show Primary Articles marginally down week on week with Food Articles falling on lower fruit and vegetable prices while Non Food Articles and Minerals experienced selective increases; year on year inflation for Primary Articles moderated. Fuel & Power rose slightly week on week due to higher furnace oil, light diesel oil and bitumen prices, though some petroleum items declined, and its year on year inflation remained substantially above Primary Articles. Annexures provide item level indices and six week trends.
    December 28, 2011
    India Japan on Course to Trade Target of US $ 25 Billion by 2014 Invites Japanese Companies to Partner in Infrastructure, Pharma, Energy & Agro Processing Sector.
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    Comprehensive Economic Partnership boosts India Japan trade prospects, inviting Japanese investment in infrastructure, manufacturing and pharma collaboration.
    The Comprehensive Economic Partnership Agreement is identified as the principal mechanism to deepen India Japan trade, services and investment, expected to catalyse substantial bilateral growth. The release invites Japanese investment in priority platforms-notably the Delhi Mumbai Industrial Corridor and National Investment and Manufacturing Zones-alongside structured energy cooperation, expansion of agro processing through designated zones, and pharmaceutical collaboration including joint research and shared IPR arrangements.
    December 26, 2011
    NMCC Condoles Passing away of V.Govindarajan.
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    Public sector leadership commemorated as former industrial policy official's contributions to manufacturing competitiveness are recognized.
    The National Manufacturing Competitiveness Council mourned the death of Shri V. Govindarajan, former Member-Secretary, highlighting his leadership in NMCC's formative years and his role in shaping the National Manufacturing Competitiveness Programme and national manufacturing strategy to improve small and medium enterprises' competitiveness; it also summarized his senior public service roles in industrial policy, company affairs, foreign investment promotion, multilateral finance engagement, and as an executive representative at the IMF.
    December 23, 2011
    FM Calls for inclusive Development and more investment in infrasturcture Sector
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    Infrastructure investment priority: call for inclusive development and more investment in the infrastructure sector now.
    The Finance Minister issued a press release calling for inclusive development and increased investment in the infrastructure sector, framing infrastructure investment as central to achieving broader development goals and signalling a governmental focus on mobilising resources toward infrastructure projects.
    December 22, 2011
    Farmer Associations Support FDI in Retail.
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    FDI in multi brand retail to restructure supply chains and improve farmer remuneration, subject to domestic safeguards.
    FDI in multi brand retail is framed as a supply chain reform to reduce intermediaries and post harvest loss, improve farmer remuneration, and expand manufacturing and employment, subject to domestic safeguards including a procurement requirement from Indian small industries, protections for farmer interests, stakeholder consultations, and consideration of a farmers' advisory body to the ministry.
    December 22, 2011
    Wholesale Price Indices for Primary Articles and Fuel & Power in India (Base: 2004-05 = 100) Review for the week ended 10th December, 2011 (19 Agrahayana, 1933 Saka) .
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    Wholesale Price Index shows easing in primary articles while fuel and power inflation remained steady, informing short term inflation monitoring.
    Wholesale price movement for the week ended 10 December 2011: Primary Articles index declined 0.2 percent to 197.7 with point to point annual inflation at 3.78 percent driven by falls in Food and Non Food Articles while Minerals rose due to crude oil; Fuel & Power remained unchanged at index 172.4 with year on year inflation of 15.24 percent.
    December 21, 2011
    Condition of Tea Plantation Workers.
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    Plantation labour safeguards ensure mandatory welfare protections for tea garden workers, supplemented by insurance and social security schemes.
    The Plantation Labour Act, 1951 requires tea plantations meeting specified thresholds to provide housing, water, sanitation, medical and educational facilities, limit working hours, ensure weekly holidays, prohibit night work for women and children, and provide certified fitness, paid annual leave, sickness and maternity benefits; these duties are primarily those of plantation owners and are supplemented by general labour laws, a Modified Personal Accident Insurance Scheme and the Tea Board Human Resource Development Scheme.
    December 21, 2011
    Impact of Unfair Imports and Dumping.
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    Child labour prohibition: employment of children under fourteen banned in specified occupations with penal sanctions and eradication strategy.
    The Child Labour (Prohibition & Regulation) Act prohibits employment of children below fourteen in specified occupations and processes, prescribes penal sanctions and fines for illegal employment, and the Government implements a threefold strategy-legal enforcement, family oriented development programmes, and project based action in high concentration areas-to eradicate child labour, supported by declining census and NSSO estimates and annexed statewise and sectoral data.
    December 21, 2011
    Downward Growth Forecst by Moodys.
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    Economic growth forecast signals slowdown; policy focus shifts to investment promotion and a national manufacturing strategy to restore competitiveness.
    Downward growth forecast attributes moderation in 2011-12 growth to high inflation, low capital formation, moderation in industrial growth, and global economic uncertainty. The government has adopted measures to rebuild confidence: promoting industrial and foreign direct investment, improving the business environment, developing industrial infrastructure through public-private initiatives, incentivising research and development, and advancing skills development. The announcement of a National Manufacturing Policy aims to make Indian industry globally competitive and support revival of industrial growth and investment.
    December 21, 2011
    Adverse Effect of Agricultural Produce Marketing Act on Retail Market.
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    Agricultural produce market regulation shapes FDI in multi brand retail, with central approval suspended pending broader consensus.
    The document addresses State regulation under APMC Acts and the Model APMC Act promoting direct marketing; nineteen jurisdictions amended laws to allow direct procurement from farmers. The Centre had approved permitting foreign direct investment in multi brand retail subject to conditions but did not require APMC amendment and has since suspended the decision to seek broader stakeholder consensus. The policy is said to aim at reducing post harvest losses and improving prices through strengthened infrastructure and direct retail purchases.
    December 19, 2011
    Review of FDI
    Show AI Summary
    FDI caps and entry routes clarified: government retains sectoral control while most sectors allow automatic entry.
    The statement identifies sectoral FDI ceilings and entry routes: FM radio requires government approval, construction development permits full foreign equity on the automatic route, and defence is subject to a capped equity share with government route; FDI in Micro and Small Enterprises follows sectoral caps and regulations. It further states that most sectors permit FDI on the automatic route up to full equity, subject to applicable laws, security conditions and ongoing policy review to enhance investor friendliness.
    December 19, 2011
    Pharmaceutical Industry.
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    FDI policy permitting full foreign investment for greenfield and brownfield pharmaceutical projects supports India's export-promotion strategy.
    Indian pharmaceutical exporters face intensifying competition from China and Brazil; the Government aims to increase pharma exports and India's export share to China. FDI policy permits full foreign investment for Greenfield projects under the automatic route and full foreign investment for Brownfield investments subject to Government approval, forming part of the export-promotion strategy announced by the Ministry of Commerce and Industry.
    December 19, 2011
    Cooperation with USA.
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    Bilateral cooperation mechanisms expand sectoral dialogue and technical exchange, enabling agricultural action plans and technology transfer.
    Bilateral cooperation was advanced via sectoral mechanisms-Trade Policy Forum, High Technology Cooperation Group, ICT Joint Working Group, CEOs Forum and Education Dialogue-to promote policy dialogue and technical exchange. An Indo Israel Agriculture Action Plan (2008-2010), implemented in Haryana and Maharashtra under the National Horticulture Mission, funded Centres of Excellence and enabled technology transfer in mechanisation, protected cultivation, orchard and nursery management, micro irrigation and post harvest management, complemented by Israeli technical assistance, expert visits and training, with a commitment to a further phase.
    December 16, 2011
    Anand Sharma Asks All Countries to ESCHEW Protectionism Addresses Inaugural Plenary of the WTO Ministerial Conference
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    Multilateral trade rules: call to reject protectionism and preserve inclusive negotiations for credible rule making.
    Multilateral trade policy should be preserved against rising protectionism that risks deepening the downturn and delaying recovery. Members are urged to honour the negotiation mandate and complete a comprehensive multilateral settlement under the Doha Development Agenda, while opposing plurilateral agreements that lack the checks, balances and inclusiveness of multilateral instruments. The address stresses protectionism's disproportionate harm to developing countries and calls for trade outcomes to remain linked to the development agenda, proposing informal consultations to identify a transparent and inclusive way forward.
    December 16, 2011
    The Companies Bill 2011 as presented to the Parliament
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    Companies Bill 2011 updates corporate law: new governance, disclosure, insolvency frameworks for companies and compliance requirements.
    The Bill modernises company law by prescribing formation and registration rules for companies (including One Person and charitable companies), imposing substantive obligations on memorandum and articles, and empowering the Registrar and Central Government to regulate names, offices and conversions. It comprehensively governs securities offers and disclosures (prospectus, red herring, shelf issues, dematerialisation), private placements, share capital mechanisms (classes, transfers, buy backs, redemption), and imposes civil and criminal liability for misstatements and fraud. It establishes governance, audit and reporting regimes, investigation and inspection powers, rehabilitation and winding up procedures, and creates specialised tribunals and enforcement architecture, with delegated rule making powers for implementation.
    December 15, 2011
    Wholesale Price Indices for Primary Articles and Fuel & Power in India (Base: 2004-05 = 100) Review for the week ended 3rd December, 2011 (12 Agrahayana, 1933 Saka)
    Show AI Summary
    Wholesale Price Index shows mixed movements: primary articles eased while fuel and power maintained strong inflationary pressure.
    The weekly WPI release reports that Primary Articles fell slightly due to lower prices in Food Articles (fruits, vegetables, poultry, selected cereals) while Non Food Articles rose on higher seed, rubber and silk prices; the point to point annual inflation for Primary Articles eased. Fuel & Power rose modestly driven by aviation turbine fuel, bitumen, naphtha and light diesel oil despite declines in petrol and furnace oil, with its annual inflation remaining higher than Primary Articles. Annexures provide detailed subgroup indices and multiweek trends.
    December 14, 2011
    Delhi Laws (Special Provisions) Bill, 2011 Passed Sh Kamal Nath Directs DDA to consider Public Feedback before finalizing MPD-2021
    Show AI Summary
    Special provisions extension preserves status quo while mandating public consultation for revision of the city Master Plan.
    Extension of special legal provisions preserves the regulatory status quo across the National Capital Territory while MPD 2021 is revised; punitive action is restrained subject to compliance with Central Government directions and Administrator approval, with safety and encroachment liabilities excepted. The Development Authority must solicit, publish and consider public suggestions through area review cells, open houses and an online platform, supported by an Apex Committee and an Expert Committee on FAR. Proposed reforms include leasehold to freehold conversion and formation of an Urban Regulatory and Appellate Authority to process land use changes and review building regulations.
    December 14, 2011
    Virginia Tobacco Produced in AP and Karnataka
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    Tobacco production reporting: Virginia crop area and output disclosed, with measures to improve productivity and reduce contaminants.
    Annual figures report area and production of Virginia tobacco in Andhra Pradesh and Karnataka for 2009-10 and 2010-11, with the Tobacco Board as source. The Board implements extension and developmental programmes through trained technical staff, supplies machinery for transplanting, topping, suckering and pesticide application, and provides tarpaulins to reduce Non Tobacco Related Materials (NTRM); these measures are presented alongside the statistical disclosure in a written parliamentary reply.
    December 14, 2011
    Index Numbers of Wholesale Prices in India (Base: 2004-05=100) Review for the month of November, 2011
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    Wholesale Price Index signals persistent annual inflation with sectoral month-on-month shifts in food, fuel and manufactured goods.
    Wholesale Price Index for All Commodities (Base 2004-05=100) rose marginally to 156.9 in November 2011, yielding a provisional annual inflation rate of 9.11% and a financial-year-to-date build-up of 4.95%. The release reports month-on-month declines in Primary Articles (notably Food and Non-Food Articles) and a rise in Minerals; Fuel & Power increased driven by petroleum products; Manufactured Products rose modestly with diverse subgroup movements detailed in weighted annexures.
    December 13, 2011
    100% FDI in Processed Food Items Through Automatic Route
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    Full FDI in processed food items allowed through automatic route, enabling foreign investment and technology access.
    The Government permits 100% FDI in all processed food items through the automatic route, allowing wholly foreign-owned investment without prior approval. The Ministry notes past FDI inflows, states it has not studied FDI's retail impact, and characterises FDI as complementing domestic investment by supplying technology and managerial practices; it also funds research institutions for quality improvement and development of food-processing technologies.

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      News and Press Release

      Review of FDI

      December 19, 2011

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      Press Information Bureau
      Government of India
      Ministry of Commerce & Industry

      19-December-2011 14:31 IST

      Review of FDI

      The extant Foreign Direct Investment (FDI) policy,  as contained in Circular 2 of 2011 – Consolidated FDI Policy’ issued by Department of Industrial Policy & promotion is as under:-

       

                 

      Sector/Activity

      % of FDI Cap/Equity

      Entry Route

      FM (FM Radio)

      26% (FDI, NRI & PIO investments and portfolio investment)

      Government

      Construction Development (including old ate homes and educational institutions)

      100%

      Automatic

      Defence

      26%

      Government

       

                  FDI in Micro and Small Enterprises (MSEs) is subject to the sectoral caps, entry routes and other relevant sectoral regulations.  FDI is also subject to applicable laws/regulations; security and other conditionalities. 

                  The Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100% is permitted on the automatic route, in most sectors/activities.  Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains increasingly attractive and investor-friendly.  Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to make it more investor friendly.

      This information was given by Shri Jyotiraditya M. Scindia,  Minister of State for Commerce and Industry in written reply to a question in the Lok  Sabha today.

      DS/GK

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