The new norms for the foreign direct investment (FDI) in e-commerce, bars e-commerce firms from selling products of entities in which they have an equity stake. Why the new norms? The new norms are brought in by the government to plug-in some loopholes like: To bypass the rules which restricted large sellers on platforms such …
Context: On 10th April 2018, the market watchdog, SEBI asked category II and III FPIs (not well-regulated in their countries of origin) to conform to a higher degree of KYC norms in order to curb round tripping of illicit money and strengthen anti-money laundering measures. It asked category II and III FPIs to provide the list …
What is Outward Direct Investment? An outward direct investment (ODI) is a business strategy in which a domestic firm expands its operations to a foreign country. This can take the form of a green field investment, a merger/acquisition or expansion of an existing foreign facility. What is the need of ODI Policy? The proposed ODI …
Context: The Centre is analysing foreign direct investment (FDI) inflows to introduce specific provisions in the new industrial policy and the FDI Policy for ensuring such funds result in enhanced technology transfer, local value-addition and innovation. According to the August 2017 discussion paper by the Department of Industrial Policy and Promotion, while the FDI policy …
New Changes: The Union Cabinet has approved number of amendments to Foreign Direct Investment (FDI) Policy. The purpose of amendments is to simplify and liberalise FDI policy in India to provide ease of doing business in country. The liberalized policy will lead to larger FDI inflows contributing to growth of investment, employment and income. Key …
What necessitated dismantling of FIPB? A person filling a proposal for the FIPB’s consideration had to provide some 18 documents duly filled and presumably in duplicates and triplicate. In any case, it was also getting redundant with more than 90-95 per cent of investment coming in through the automatic route. FIPB was among the last …
Facts: India has received over US $300 billion Foreign Direct Investment (FDI) between April 2000 and September 2016 33% of the FDI came through the Mauritius route. India received US $101.76 billion dollar from Mauritius between April 2000 and September 2016. India’s services sector received maximum 18% of the cumulative equity FDI inflows. FDI in …
There is a certain paradox in the fact that India, since the 1991 reforms, has been trying to attract foreign direct investment for its development when the outward flow of FDI by Indian corporate houses is rising. Elaborate the statement and examine the causes of this paradox. (200 Words) According the OECD, between 2006 and …
Government relaxed FDI norms: Further opened up several key sectors like defence, construction, civil aviation etc. Eased norms for business such as single-brand retail and private banking Allowed FIPB to clear proposals up to Rs. 5000 crore (Earlier Rs. 3000 crore) Moving towards automatic from the government approval route Recently the government decided that investments …
Inverted duty structure – high import duties on raw materials and intermediates, and lower duties on finished goods – that discourage the production and export of value-added items. Thus, apparel can be imported into India duty free while its raw material –manmade fibres attract an import duty of 10 percent. That makes no sense. Similarly, …