Page 37 - MSME April-May 2017
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News ‘Foreign Direct Investment Infows-A Success Story’ he Government in last three years has and raising the FIPB approval limit were also undertaken a number of reforms in different undertaken to promote ease of doing business in Tareas of economy. In this regard FDI policy the country. These initiatives resulted in the country reforms carried out by Government are nothing less receiving the then highest ever FDI inflow of US than historic. The scale of reforms can be gauged Dollar 55.6 billion. from the fact that during this period, 21 sectors covering 87 areas of FDI policy have undergone The measures towards FDI policy reforms. This has resulted in increased FDI inflows liberalization and reforms continued in the last which year after year is setting up new records. If year financial year. A paradigm shift was made the FDI inflows of US Dollar 55.6 billion for the in the FDI policy on retail and other financial year ending March, 2016 were an all-time high, services sector. For retail trading of food products, the record was not meant to last long. The country the Government permitted 100% FDI with registered FDI inflow of US Dollar 60.08 billion in unqualified condition that such food products the next financial year (2016-17), thereby scaling have to be manufactured and/or produced in an even higher peak. India. The measure promotes domestic industry, restricts imports, creates local jobs and results Increased FDI inflows in the country are largely attributed to intense and bold policy reforms in conserving valuable foreign exchange. In the Financial services sector, Government the Government undertook to bring pragmatism promulgated that any financial sector activity in the FDI regime. The country has now become which is regulated by any financial sector the topmost attractive destination for foreign regulator will be eligible for 100% FDI under investment. A new direction was given to FDI automatic route, and approval would be needed policy reforms in 2014 itself when conservative sectors like Rail Infrastructure and Defence were only for unregulated financial sector activities. liberalized. This was accompanied by reforms During the last financial year, FDI policy reforms in other sectors such as Medical Devices and were also undertaken in other sectors such as Defence, Airport Infrastructure, Broadcasting, Construction Development. The momentum of Animal Husbandry and Retail Trading. The path positive business climate was further ignited with breaking reform measures undertaken during launch of Make in India initiative in September the last financial year have resulted in India 2014. The country in the year ending March 2015 surpassing the FDI received in 2015-16 and received FDI of US Dollar 45.15 billion as against US Dollar 36.05 billion in the preceding fiscal. registering an inflow of US Dollar 60.08 billion during 2016-17, a new all time high. Reform measures gained further momentum the following year. FDI policy on a number of It has been the endeavor of the Government to sectors was liberalized. With a view to provide put in place an enabling and investor friendly FDI ease of doing business, licensed and non-sensitive policy. The intent all this while has been to make activities were placed under automatic route and the FDI policy more investor friendly and remove investment caps were raised. FDI policy provisions the policy bottlenecks that have been hindering were radically overhauled across sectors such as the investment inflows into the country. The Construction Development, Broadcasting, Retail steps taken in this direction during the last three Trading, Air Transport, Insurance and Pension years have borne fruit as is evident from the ever among others. In addition, initiatives such as increasing volumes of FDI inflows being received introduction of composite caps in the FDI policy into the country. April-May, 2017 35
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