Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Category: ?
Categorized by AI
---- All Categories ---- ❯
  • ---- All Categories ----
  • Income Tax
  • GST
  • Customs, DGFT & SEZ
  • FEMA & RBI
  • Corp. Laws, SEBI & IBC
  • PMLA, Black Money & ED
  • Budget
  • News and Press Release
  • PTI News
Month:
---- All Months ---- ❯
  • ---- All Months ----
  • January
  • February
  • March
  • April
  • May
  • June
  • July
  • August
  • September
  • October
  • November
  • December
Year:
---- All Years ---- ❯
  • ---- All Years ----
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
☰   Show Results ❯
    The cumulative exports (merchandise & services) during April-September 2026-27 are estimated at US$ 476.20 Billion, as compared to US$ 418.31 Billion ...
    Union Minister of Commerce and Industry Shri Piyush Goyal Calls on Youth to Drive India’s AI Journey
    CCI approves acquisition of majority stake in Tribhovandas Bhimji Zaveri Limited by GRT Jewellers (India) Private Limited
    CCI approves the acquisition of certain shareholding in Kids Clinic India by NuageLux BidCo S.à r.l
    CCI approves acquisition of certain shareholding in FarMart Service Pvt Ltd by Impact Fund Denmark, Belgian Investment Company for Developing Countrie...
    Frequently Asked Questions (FAQs) on Strategic Restructuring of IDBI Bank Ltd.
    Government Approves Strategic Restructuring of IDBI Bank Ltd.
    Central Bureau of Narcotics (CBN) strengthens Nasha Mukt Bharat vision by dismantling vast illicit cannabis cultivation in Himachal Pradesh
    DRI busts illegal import of more than 73,00,000 kg of Pakistan-origin rock salt; four arrested
    Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman to embark on an official visit to Bangkok, Thailand, from 14th to 18th Octobe...
    Annual Returns in the form of GSTR-9/9C for FY 2025-26
    Frequently Asked Questions (FAQs) on GST Law and procedures
    PM GatiShakti National Master Plan completes five years of transforming India’s infrastructure landscape
    NLMC’s first end-to-end e-auction of RINL land parcels generates ₹366.33 Crore in successful bids on Day 1, 150 plots sold
    CBI Arrests Bhopal CGST Superintendent while accepting Rs 2 Lakh Bribe
    Union Finance Minister Smt. Nirmala Sitharaman concludes successful visit to Singapore, focusing on strengthening investment and financial cooperation
    Commerce and Industry Minister Shri Piyush Goyal Calls for Doubling India-UK Bilateral Trade by 2030
    Joint Statement of the 16th Meeting of the India–UK Joint Economic and Trade Committee (JETCO)
    Union Minister of Commerce and Industry Shri Piyush Goyal Emphasises a Twin-Track Approach of Global Technologies and Employment Generation
    Central Bureau of Narcotics (CBN) M.P. Unit seizes over 4.2 tonnes of poppy straw in two operations; Three persons arrested
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

News
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
October 15, 2026
Show AI Summary
Merchandise and services trade estimates show export growth, import expansion, and a wider combined trade deficit over the reporting period.
Combined trade estimates for April-September 2026-27 show exports of US$ 476.20 billion and imports of US$ 551.13 billion, resulting in a trade deficit of US$ 74.93 billion. Merchandise exports rose to US$ 259.89 billion, while merchandise imports reached US$ 437.53 billion. Estimated services exports were US$ 216.31 billion and services imports were US$ 113.60 billion, producing a services trade surplus of US$ 102.71 billion. September services figures are estimates, and specified earlier-period data were revised using quarterly balance-of-payments data.
October 15, 2026
Show AI Summary
Emerging technology skills and resilient supply chains are positioned as foundations for investment competitiveness and inclusive economic growth.
Ministerial policy priorities for India's trade, investment and technology agenda emphasise artificial intelligence, cybersecurity, technology adoption, manufacturing investment and lifelong skill development. Investment competitiveness is linked to political stability, resilient supply chains, and fair and transparent trading practices. The first tranche of a bilateral trade agreement with the United States has been finalised, while final contours and legal drafting continue before operationalisation.
October 14, 2026
Show AI Summary
Majority stake acquisition in the jewellery sector receives competition clearance for GRT Jewellers' purchase of Tribhovandas Bhimji Zaveri.
Competition Commission of India approved GRT Jewellers (India) Private Limited's proposed acquisition of a majority stake in Tribhovandas Bhimji Zaveri Limited. The transaction concerns entities operating in the Indian gems and jewellery market, including a private limited acquirer and a publicly listed target engaged in manufacturing and sale of gems and jewellery.
October 14, 2026
Show AI Summary
Minority shareholding acquisition in mother and baby healthcare receives competition clearance for a private equity-backed investment.
Competition Commission of India clearance authorises NuageLux BidCo S.a r.l. to acquire approximately 23% of the fully diluted shareholding in Kids Clinic India Ltd. The transaction constitutes an acquisition of a minority equity interest in a healthcare provider operating under the Cloudnine brand. NuageLux BidCo is a Luxembourg-incorporated private limited special purpose vehicle, ultimately controlled by Permira Holdings Ltd.
October 14, 2026
Show AI Summary
Competition clearance permits development finance and alternative investment funds to acquire equity in an agricultural commodities trading business.
Competition clearance has been granted for the acquisition of certain equity shareholding in FarMart Service Private Limited by Impact Fund Denmark, Belgian Investment Company for Developing Countries SA/NV, and Orios Fund IIIa. FarMart conducts business-to-business trading, purchasing and selling of agricultural products and commodities in India and international markets. The acquiring investors include development finance institutions and a sub-fund of a SEBI-registered Category II alternative investment fund.
October 14, 2026
Show AI Summary
Strategic bank restructuring requires independent valuation, qualified bidding, regulatory fit-and-proper review, and a compliance roadmap before ownership transfer.
Strategic restructuring of IDBI Bank Ltd. involves the sale of 60.72% of its shareholding to an approved Strategic Buyer, comprising holdings of the Government of India and LIC. Qualified bids were evaluated against a benchmark derived from independent Market Multiple and Asset Valuation methods, with volatile stock-market prices disregarded. Further steps require fit-and-proper assessment, a regulatory compliance roadmap, withdrawal of government and LIC board nominees, and management or sale of their residual shareholdings under applicable procedures.
October 14, 2026
Show AI Summary
Strategic bank divestment requires fit and proper screening, independent valuation, competitive bids, and continuing regulatory compliance.
Strategic restructuring of IDBI Bank Ltd. has been approved through sale of a 60.72% equity stake to a strategic buyer, with residual holdings retained by the Government of India and LIC. Bidder participation required fit-and-proper and security clearances. After initial bids fell below the reserve price, best offers were assessed against independent enterprise valuations based on the Market Multiple Method and Asset Valuation Method. The successful bid exceeded the benchmark and both fair-value estimates. Completion remains subject to regulatory credentials and a compliance roadmap.
October 14, 2026
Show AI Summary
Illicit cannabis cultivation enforcement combines source destruction, technology-assisted identification, and alternative crop development to disrupt narcotics supply chains.
Operation Parivartan uses ground surveys and drone technology to identify and destroy illicit cannabis cultivation at source, with Forest and Police Department support in difficult terrain. It also incorporates public dialogue and alternative crop development under the NDPS Policy 2012. CBN, as the apex drug law-enforcement and regulatory agency under the Department of Revenue, is responsible for identifying and destroying illicit cannabis and opium cultivation and continues such operations nationwide.
October 14, 2026
Show AI Summary
Import prohibition on Pakistani-origin goods: third-country routing and fabricated origin records triggered customs enforcement and arrests.
India's prohibition on direct or indirect import or transit of Pakistani-origin goods is alleged to have been circumvented through third-country routing and false origin documentation. Operation Deep Manifest identified rock salt imports routed through Colombo with purported UAE-issued certificates of origin and invoices. Preliminary investigation linked importers to an alleged transnational network using fabricated trade records and false declarations of origin. Containers, bank-held sales proceeds and Pakistan-origin dry dates were seized, and four persons were arrested under the Customs Act, 1962.
October 14, 2026
Show AI Summary
International financial cooperation will guide multilateral and bilateral discussions on economic outlook, reform priorities, investment opportunities, and infrastructure financing.
India's Finance Minister will participate in multilateral and bilateral economic discussions addressing economic developments, financial-sector issues, the global economic outlook, development priorities, international financial cooperation, and reform of the international financial architecture. Related engagements will examine trade resilience, investment opportunities, and mobilisation of private capital for urban and water infrastructure, while highlighting India's economic performance and reform priorities.
October 14, 2026
Show AI Summary
GST annual return filing requires prior GSTR-1 and GSTR-3B filing before access to annual return forms.
GSTR-9/9C annual return filing for FY 2025-26 is enabled on the GST portal from 8 October 2026. Access to the annual-return filing tile requires filing all GSTR-1 and GSTR-3B returns for the relevant financial year. Taxpayers requiring filing assistance may submit a support ticket through the GSTN helpdesk.
October 13, 2026
Show AI Summary
Automated GST registration and refunds streamline compliance through risk-based processing, electronic verification, and limited officer intervention.
GST refund administration is proposed to use phased risk-based system processing, with acknowledgement or deficiency action within ten days, deemed acknowledgement on inaction, automated provisional refund for eligible low-risk zero-rated and inverted-duty claims, and fully automated refund of excess electronic cash-ledger balances. Validation failures require correction and fresh filing or referral for officer scrutiny, while final scrutiny remains applicable in specified cases. Applicants must file all due returns and submit supporting material electronically. Delayed-refund interest applies beyond the statutory period, and eligible input-service and capital-goods credit is proposed to be included in prescribed refund computations.
October 13, 2026
Show AI Summary
Integrated infrastructure planning under PM GatiShakti uses geospatial data and coordinated appraisal to strengthen multimodal connectivity and logistics efficiency.
PM GatiShakti National Master Plan uses an integrated geospatial planning framework to coordinate infrastructure, economic and social-sector development. The framework supports multimodal connectivity, intermodal links, last-mile access, project appraisal and synchronised implementation. It has expanded to district-level planning for local services and is supported by public-access, knowledge-sharing, decentralised data-management and monitoring systems. The Integrated Transport and Logistics Authority is intended to strengthen transport and logistics research, planning, appraisal, monitoring and impact assessment.
October 13, 2026
Show AI Summary
Public asset e-auctions enable transparent land monetisation through registration, due diligence, and competitive online bidding.
NLMC's first end-to-end e-auction monetised surplus RINL land through transparent, competitive online bidding, selling 150 plots at bids above the aggregate reserve price. The process is coordinated with the asset owner and includes bidder outreach, registration, documentation, Earnest Money Deposit requirements, and online participation. A final phase for the remaining parcels requires timely registration, review of reserve prices, eligibility conditions and participation requirements, due diligence, and completion of prescribed formalities.
October 13, 2026
Show AI Summary
Bribery allegations involving tax enforcement powers led to arrest during an alleged acceptance of undue advantage.
Bribery allegations concern a CGST Superintendent accused of demanding a monthly undue advantage from a scrap-business proprietor in exchange for not intercepting scrap vehicles or obstructing the business. A criminal case was registered, and a trap operation resulted in the Superintendent being apprehended while allegedly accepting the demanded undue advantage. Searches recovered cash and immovable-property documents, and the investigation remains ongoing.
October 13, 2026
Show AI Summary
Financial connectivity and investment cooperation focused on institutional capital, digital finance, and strategic-sector investment opportunities.
Bilateral investment and financial cooperation between India and Singapore focused on mobilising long-term institutional capital, expanding financial connectivity, and increasing investment in infrastructure and strategic sectors. Investment discussions covered AI-related infrastructure, semiconductors, renewable energy, manufacturing, MSMEs, trade finance, healthcare and food supply chains. Financial-technology dialogue addressed asset tokenisation, digital money, CBDCs, interoperability and trusted settlement arrangements, alongside possible cooperation on their use in financial markets.
October 12, 2026
Show AI Summary
CETA implementation prioritises accessible origin rules, customs guidance, and business engagement to expand bilateral trade and investment.
Effective CETA implementation depends on accessible tariff schedules, rules of origin and documentation guidance, together with support for businesses navigating tariff reductions, customs procedures, regulatory requirements and procurement opportunities. Committees, working groups and a joint utilisation review are intended to receive business feedback, address implementation issues and improve use of the agreement. Sectoral round tables, delegations and exhibitions, along with mutual recognition and capacity-building, are envisaged to support new exporters, product lines, investment and partnerships.
October 12, 2026
Show AI Summary
CETA implementation establishes annual utilisation data exchanges and institutional mechanisms to support preferential trade and resolve business barriers.
CETA implementation includes annual exchanges of utilisation data and business feedback, beginning one year after entry into force, to identify barriers to preferential tariff use and support needs. Committees, working groups and government contact points will be established to maintain operational implementation and address emerging issues. Certificates of Origin issued through self-certification support claims for preferential treatment, while tariff-rate quotas apply to specified vehicle imports.
October 12, 2026
Show AI Summary
Trade openness and domestic manufacturing are positioned to expand technology access, investment, employment, and global competitiveness.
Global market engagement through Free Trade Agreements is paired with domestic manufacturing and employment objectives. Access to advanced technologies and electronics is linked to investment in electronics, white goods and semiconductor manufacturing. Tourism, demographic advantage and international demand for Indian workers are identified as employment opportunities. Car-import quota arrangements with the United Kingdom and European Union are described as focused on expensive vehicles, while domestic automobile manufacturing and world-class quality standards are positioned as central to global competitiveness.
October 12, 2026
Show AI Summary
NDPS enforcement targets concealed poppy straw trafficking through intelligence-led vehicle interceptions, seizures, arrests, and continuing network investigation.
NDPS Act enforcement involved two intelligence-based vehicle interceptions leading to seizure of 4,209.80 kg of concealed poppy straw, two vehicles and wheat bags used as cover cargo. Three persons were arrested under the relevant provisions. The recovered contraband included lanced poppy straw, unlanced poppy straw and poppy straw powder. Investigation continues to identify the source, intended recipients and other persons connected with the trafficking network.

News

Back

All News

Showing Results for :
Reset Filters
No Records Found

News

Back

All News

FDI for Make in India

March 18, 2020

Contents
Circulars
Acts
Summary
Note

Note

-

Bookmark

Print

Print

Make in India initiative was launched along with action plans prepared for various sectors with the objective of facilitating investment, fostering innovation, building best in class manufacturing infrastructure, making it easy to do business and enhancing skill development. The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset.

Make in India initiative has been reviewed and is now focusing on 27 sectors under Make in India 2.0. List of 27 sectors under Make in India 2.0 is annexed as annexure-I. Department for Promotion of Industry and Internal Trade is coordinating action plans for 15 manufacturing sectors while Department of Commerce is coordinating 12 service sectors.

The Government of India is making continuous efforts under Investment Facilitation including financial assistance to Invest India and for implementation of Make in India action plans to identify potential investors. Support is being provided to Indian Missions abroad and State Governments for organising events, summits, road-shows and other promotional activities to attract investment in the country under the Make in India banner. Investment Outreach activities are being carried out for enhancing International co-operation for promoting FDI and improve Ease of Doing Business in the country.

Further, Government has put in place a liberal and transparent policy for Foreign Direct Investment (FDI), wherein most of the sectors are open for FDI under the automatic route. Further, FDI Policy reforms made after 2014-15 in sectors related to Make in India is annexed as Annexure-II.

Representations have been received in this Department alleging that some e-commerce platforms are engaged in predatory pricing and are providing excessive discounts. The extant Foreign Direct Investment (FDI) policy on e-commerce sector, inter-alia, specifies that e-commerce marketplaces will not directly or indirectly influence the sale price of goods or services and shall maintain a  level playing field. e-Commerce companies having foreign investment can operate only a marketplace model and there are restrictions on the inventory based model of e-Commerce. In order to clarify the same, Department for Promotion of Industry and Internal Trade (DPIIT), vide Press Note 3 of 2016, issued guidelines for FDI in e-Commerce on 29 March 2016.

However, allegations were made against e-Commerce companies that the marketplaces were violating the norms laid down in Press Note 3 of 2016. With a view to clarify the already existing policy framework, Press Note 2 of 2018 was issued by DPIIT on 26 December 2018 to provide further clarification on FDI Policy in relation to e-Commerce companies. Through the latest Press Note 2 of 2018, Government has reiterated the policy provisions to ensure better implementation of the policy in letter and spirit. Further, Clause (ix) of Press Note 2 of 2018, stipulates that e-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field. Services should be provided by e-commerce marketplace entity or other entities in which e-commerce marketplace entity has direct or indirect equity participation or common control, to vendors on the platform at arm's length and in a fair and non-discriminatory manner. Such services will include but not limited to fulfilment, logistics, warehousing, advertisement/ marketing, payments, financing, etc. Cash back provided by group companies of marketplace entity to buyers shall be fair and non-discriminatory. For the purposes of this clause, provision of services to any vendor on such terms which are not made available to other vendors in similar circumstances will be deemed unfair and discriminatory. Further, if any violation is reported necessary action may be taken by the competent authority.

Further, Competition Commission of India in one case (i.e. Case No. 40/2019) filed against Flipkart Internet Pvt. Ltd. And Amazon Seller Services Private Ltd., vide order dated 13.01.2020, passed under section 26 (1) of the Competition Act 2002, has directed the DG to conduct an investigation and submit its investigation report. The said order passed by the Commission was impugned by Amazon Seller Services Pvt. Ltd. Before the Hon’be High Court of Karnataka in W.P. No 3363/2020 and the Hon’ble High Court vide order dated 14.02.2020 has stayed the operation of the order of the Commission

ANNEXURE I

 List of 27 Sectors under Make in India initiative 2.0

(Manufacturing Sectors)

  1. Aerospace and Defence
  2. Automotive and Auto Components
  3. Pharmaceuticals and Medical Devices
  4. Bio-Technology
  5. Capital Goods
  6. Textile and Apparels
  7. Chemicals and Petro chemicals
  8. Electronics System Design and Manufacturing (ESDM)
  9. Leather & Footwear
  10. Food Processing
  11. Gems and Jewellery
  12. Shipping
  13. Railways
  14. Construction
  15. New and Renewable Energy

(Service Sectors)

  1. Information Technology & Information Technology enabled Services (IT &ITeS)
  2. Tourism and Hospitality Services
  3. Medical Value Travel
  4. Transport and Logistics Services
  5. Accounting and Finance Services
  6. Audio Visual Services
  7. Legal Services
  8. Communication Services
  9. Construction and Related Engineering Services
  10. Environmental Services
  11. Financial Services
  12. Education Services

ANNEXURE-II

 

FDI Policy Reforms in sectors listed under Make in India since May 2014-15

 1.     Defence sector: India incurs huge expenditure on imports of defenceequipment as the domestic defence industry has not been able to meet the expectations of the present times. The sector is capital intensive and requires advance technologies. Earlier FDI regime permitted 49% FDI participation in the equity of a company under automatic route.  FDI above 49% was permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:

  1. Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded.
  2. FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.

2.     Pharmaceutical: With the objective of making the sector more attractive to foreign investors, 74% FDI under automatic route has been permitted in brownfield pharmaceuticals. FDI beyond 74% is allowed through government approval route. ‘Non-compete’ clause would not be allowed in automatic or government approval route except in special circumstances with the approval of the Foreign Investment Promotion Board.

FDI in brownfield pharmaceuticals, under both automatic and government approval routes, is subject to compliance of following conditions:

(a) The production level of National List of Essential Medicines (NLEM) drugs and/or consumables and their supply to the domestic market at the time of induction of FDI, being maintained over the next five years at an absolute quantitative level. The benchmark for this level would be decided with reference to the level of production of NLEM drugs and/or consumables in the three financial years, immediately preceding the year of induction of FDI.  Of these, the highest level of production in any of these three years would be taken as the level.

(b) R&D expenses being maintained in value terms for 5 years at an absolute quantitative level at the time of induction of FDI.  The benchmark for this level would be decided with reference to the highest level of R&D expenses which has been incurred in any of the three financial years immediately preceding the year of induction of FDI

(c) The administrative Ministry will be provided complete information pertaining to the transfer of technology, if any, along with induction of foreign investment into the investee company.

3.     Medical Devices: India has achieved an eminent global position in pharma sector. However, same has not been replicated in the medical devices industry. The country has huge pool of scientists and engineers who have potential to take medical device industry to a very high level. Domestic capital market is not able to provide much needed investment in the sector. The government has therefore permitted FDI up to 100% under the automatic route for manufacturing of medical devices, without any distinction of greenfield or brownfield and such FDI will not be subjected to other conditions of the FDI policy on the pharmaceutical sector.

4.     Food Product Retail Trading: 100% FDI under government approval route has been permitted for trading, including through e-commerce, in respect food products manufactured and/or produced in India. This will benefit farmers, give impetus to food processing industry and create vast employment opportunities.

5.     Rail Infrastructure: The modernization of Railways requires very large amount of capital investment.  This makes foreign investment imperative in rail infrastructure especially in highly capital and technology intensive areas like suburban corridors, high speed train systems, train sets, railway rolling stock including locomotives/coaches, railway electrification, signaling systems dedicated freight line projects. Accordingly the Government with view to attract foreign investment in the sector has opened following activities of Rail infrastructure to 100% under automatic route:

Construction, operation and maintenance of (i)  Suburban corridor projects through PPP, (ii)  High speed train projects, (iii) Dedicated freight lines, (iv)  Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities, (v) Railway Electrification, (vi) Signaling systems, (vii) Freight terminals, (viii) Passenger terminals, (ix)  Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line and (x)  Mass Rapid Transport Systems.

However, FDI beyond 49% of the equity of the investee company in sensitive areas from security point of view, will be brought before the Cabinet Committee on Security (CCS) for consideration on a case to case basis.

6.     Construction Development sector: Investment in the construction development sector remains a priority of the Government as it results in infrastructure creation; employment generation from unskilled workers to engineers, architects, designers as well as financial and other supporting services. FDI policy on Construction Development permits 100% foreign investment under automatic route subject to certain conditions. In order to liberalize and bring pragmatism in the policy so as to attract more foreign investment in the country not only in large infrastructure projects but also in held-up and smaller projects following amendments have introduced in the FDI policy on the sector:

(a) Removal of conditions of area restriction of floor area of 20,000 sq. mtrs in construction development projects and minimum capitalization of US $ 5 million to be brought in within the period of six months of the commencement of business.

(b) Exit and repatriation of foreign investment is now permitted after a lock-in-period of three years. Transfer of stake from one non-resident to another non-resident, without repatriation of investment is also neither to be subjected to any lock-in period nor to any government approval.

(c) Exit is permitted at any time if project or trunk infrastructure is completed before the lock-in period.

(d) 100% FDI under automatic route is permitted in completed projects for operation and management of townships, malls/ shopping complexes and business centres.

(e) It has been clarified that ‘real-estate broking service’ does not amount to real estate business and is therefore, eligible for 100% FDI under automatic route.

7.     Civil Aviation Sector: Foreign equity cap of activities of Non-Scheduled Air Transport Service, Ground Handling Services have been increased from 74% to 100% under the automatic route. With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% FDI under automatic route has been allowed in Brownfield Airport projects.

FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service raised to 100%, with FDI upto 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and nonscheduled air­ transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy.

As per the earlier policy, foreign airlines were allowed to invest under Government approval route in the capital of Indian companies operating scheduled and nonscheduled air transport services, up to the limit of 49% of their paid-up capital. However, this provision was not applicable to M/s Air India Ltd., thereby implying that foreign airlines could not invest in Air India. Now, foreign investment(s) in Air India has been allowed, including that of foreign airline(s), up to 49% either directly or indirectly. Substantial ownership and effective control of Air India shall continue to be vested in Indian Nationals.

Further, Union Cabinet in its meeting on March 4, 2020; permitted foreign investment(s) in M/s Air India ltd. By NRIs, who are Indian Nationals, upto 100% under automatic route.

8.     Manufacturing Sector: In order to provide boost to the manufacturing sector and give impetus to the ‘Make in India’ initiative, the Government has permitted a manufacturer to sell its product through wholesale and/or retail, including through e-commerce under automatic route.

9.     Contract Manufacturing: In order to provide clarity on contract manufacturing, it has been decided to allow 100% FDI under automatic route in contract manufacturing in India as well. Subject to the provisions of the FDI policy, foreign investment in ‘manufacturing’ sector is under automatic route. Manufacturing activities may be conducted either by the investee entity or through contract manufacturing in India under a legally tenable contract, whether on Principal to Principal or Principal to Agent basis.

10.   Other Financial Services: Government has reviewed FDI policy on Other Financial Services and NBFCs to provide that foreign investment in financial services activities regulated by financial sector regulators such as RBI, SEBI, IRDA etc. will be 100% under the automatic route. In financial services, which are not regulated by any financial sector regulator or where only part of the financial service activity is regulated or where there is doubt regarding regulatory oversight, foreign investment upto 100% will be allowed under the government approval route.

11.   Insurance & Pension Sectors: FDI Policy on Insurance sector was reviewed in view of amendment to the Insurance Laws (Amendment) Act 2015 to increase the sectoral cap of foreign investment from 26% to 49%. Further it has been provided that FDI in the sector would be permitted under automatic route. Similar changes have also been brought in the FDI Policy on Pension Sector.

12.  Banking-Private sector: Government introduced full fungibility of foreign investment in Banking-Private sector. Accordingly, FIIs/FPIs/QFIs, following due procedure, can now invest up to sectoral limit of 74%, provided that there is no change of control and management of the investee company.

13.   Insurance Intermediaries: Vide Press Note 1(2020)100% FDI has been permitted in Intermediaries or Insurance Intermediaries including insurance brokers, re-insurance brokers, insurance consultants, corporate agents, third party administrator, Surveyors and Loss Assessors and such other entities, as may be notified by the Insurance Regulatory and Development Authority from time to time.

14.   Digital Media: The extant FDI policy provides for 49% FDI under approval route in Up-linking of ‘News & Current Affairs’ TV Channels. However, the policy does not have any specific provision pertaining to broadcasting of content through digital media. In the background of free mushrooming of news/ other content over the internet and possibly over the mobile, it is important that this gap in the FDI policy is addressed and the provisions governing foreign investment in the activity are clearly spelt out. Accordingly, 26% FDI under government route has been permitted for uploading/ streaming of News & Current Affairs through Digital Media.

This information was given by the Minister of Commerce and Industry, Shri Piyush Goyal, in a written reply in the Lok Sabha today.

Topics

Acts Income Tax