NEW CONSOLIDATED FDI POLICY ANNOUNCED

Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India has issued a new consolidated FDI Policy framework, that would now constitute a single document on FDI policy and mark the inception of a whole new chapter on FDI in India. The policy will be effective from April 1, 2010.  From now onwards, a consolidated policy document would be issued at the end of every six months, which will substitute the existing policy.

The new policy document will supersede all Prior Policies/ Regulations on FDI which are contained in Foreign Exchange Management Act (FEMA), 1999, RBI Regulations under FEMA, 1999 and Press Notes/ Press Releases/ Clarifications issued by DIPP and reflects the current 'Policy framework' on FDI. All earlier Press Notes/ Press Releases/ Clarifications on FDI issued by DIPP which were in force and effective as on March 31, 2010 stand rescinded as on March 31, 2010.

Consolidated FDI Policy

Consolidated FDI policy: unified six monthly framework replaces prior FDI regulations and rescinds earlier press notes. A new Consolidated FDI Policy, effective April 1, 2010, creates a single unified FDI framework that integrates existing foreign exchange and regulatory provisions. The policy mandates issuance of a consolidated FDI document every six months and expressly rescinds earlier press notes, press releases and clarifications on FDI that were effective as of March 31, 2010, superseding prior FDI policy instruments.