A consolidated report on changes made to the policies and regulations that govern foreign direct investment (FDI) in India, was released by the Centre in ‘Press Note 7’ that was issued yesterday.
FDI in India is regulated through press notes (issued every year in serial order) that publicly state the government’s position on the policy. According to an official release from the government, this year’s press note includes a summary of the FDI policy with changed regulations applicable in various sectors.
After reviewing of the FDI policy in 2005-06, the summary was notified in Press Note 4 of 2006, followed by Press Note 5 in the same year, while Press Note 2 and Press Note 3 of 2007 incorporated further policy revisions.
In Press Note 7 this year, the revised policies list sectors where foreign investment is not permitted. These sectors include retail (except single-brand retailing), atomic energy, lottery, gambling and betting, business of chit fund, and trading in transferable development rights (TDRs).
The note also specifies conditions like FDI limit and criteria for foreign firms to invest in domestic sectors that include power, banking, agriculture, manufacturing, retail, broadcasting and non-banking finance companies (NBFCs).