FIPB looking forward to a favourable decision from the government on FDI
The MNCs are waiting with a bated breath to invest in India. There were a lot of oppositions against FDI in retail in the last few sessions of the parliament during the UPA regime; however the foreign investors are expecting the new government to take some favourable decisions for them.
The Finance Ministry will take a call on the 31 proposals of foreign direct investment (FDI), including that of Johnson & Johnson and Monsanto Holdings, next week. The Foreign Investment Promotion Board (FIPB), headed by Finance Secretary Arvind Mayaram, is scheduled to meet the Finance Ministry on July 4, ironically which happens to be the Independence Day of the US.
As per the FIPB agenda, Johnson and Johnson, Koye Pharmaceutical and Kemin Industries South Asia are among the nine FDI proposals related to pharmaceutical sector. Other major investment applications include that of Ventura (India) Pvt Ltd, Opensource Software Solutions, Christine Comarmand Margotine and Monsanto Holdings.
Most of the sectors can allow FDI through an automatic route; however foreign investments in certain sectors, like defence and pharmaceuticals, have to be the first approved by the FIPB. Foreign investments are crucial for India which needs about $1 trillion by March 2017 to overhaul infrastructure such as ports, airports and highways and boost growth.
If the government is unable to take a decision to lure the foreign investors then they are likely to go to other countries which will be detrimental for the growth of the nation.
Source- Financial Chronicle
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