Press Information Bureau

Government of India

Ministry of Micro,Small & Medium Enterprises

29-November-2012 17:16 IST

To promote capital investment by foreign multinational companies in small and medium enterprises the Foreign Direct Investment (FDI) in micro and small enterprises (MSEs) has been raised to 100 percent from 24 per cent. However, FDI in MSMEs is subject to sectoral caps and other relevant sectoral regulations.

Enhanced capital investment by foreign multinational companies will create an environment of healthy competition among MSMEs whether financed by foreign investment or otherwise, resulting in availability of better products for consumers.

This information was given by the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Shri K. H. Muniyappa in a written reply to a question in the Lok Sabha today.

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RTS/HSN

Foreign direct investment in micro and small enterprises now permitted fully, subject to sectoral caps and regulations. Foreign Direct Investment in micro and small enterprises is now permitted up to full foreign ownership, subject to sectoral caps and other sectoral regulations; multinational investment is intended to promote capital inflows and competition within MSMEs while compliance with existing sector-specific licensing and regulatory frameworks remains required.