Potential For Further FDI Liberalisation On Horizon: DPIIT Secy
Date
5/20/2024 2:19:23 PM
(MENAFN- KNN India) New Delhi, May 20 (KNN) The Indian government is considering further liberalisation of foreign direct investment (FDI) norms across additional sectors once the new administration takes office, according to senior officials.
Addressing the Confederation of Indian Industries annual summit, Rajesh Kumar Singh, Secretary of the Department for Promotion of industry and Internal Trade (DPIIT), stated that India likely has one of the world's most open FDI regimes.
"Recently, we delivered on liberalising our FDI norms in space, and it is quite possible that under a new government, we can attempt some further liberalisation of any remaining sectors," Singh remarked, without specifying which industries could see eased restrictions.
The federal government recently permitted 100 per cent overseas investment into satellite component manufacturing to attract foreign entities and private companies to the space segment.
Singh noted that while the production-linked incentive scheme spurs investment inflows, alternative approaches without budgetary outlays, such as lowering import duties contingent on local manufacturing commitments, could entice funding.
As India negotiates new free trade agreements, Singh suggested the nation may adopt a 'less conservative' stance, necessitating industry preparedness for lower tariff regimes long-term.
Concurrently, he affirmed the government's commitment to addressing any tax regime distortions hampering manufacturing competitiveness.
Furthermore, DPIIT is focused on the forthcoming World Bank Business Ready (B-Ready) ranking, replacing the former Ease of Doing Business Index.
Commencing in August, the assessment will evaluate the ease of business entry, operation, and exit across economies through 1,370 indicators shared by the World Bank.
(KNN Bureau)
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