Govt to release Six Discussion Papers on FDI policy in May
The government said on Monday it will come out with six discussion papers by mid May on the country’s foreign direct investment policy.
One of the papers could be on liberalising the foreign direct investment regime in the retail sector.
“We will bring out discussion papers and invite suggestion from the public,” secretary department of industrial policy and promotion R P Singh told reporters on the sidelines of a Federation of Indian Chambers of Commerce and Industry function in New Delhi .
Asked what areas the papers will cover, Singh said, “All the issues, which are troubling you, will be covered.” Singh indicated that one of the papers would be on the multi-brandretail sector.
While India allows 51 per cent FDI in single brand retail, foreign investment is not permitted in the lucrative multi-brand sector.
Sources also said the papers would cover sectors like defence, pharmaceutical and agriculture.
The DIPP secretary said the discussion papers would be released by May 12 or 13. Singh also said that the pharmaceutical department was not averse to FDI, but is demanding review of the policy.
“They (department of pharmaceutical) are not opposing FDI. They are only saying that FDI (policy) should be reviewed and it should not result in Indian companies being purchased by outsiders,” Singh said.
India allows 100 per cent FDI in drugs and pharmaceuticals through automatic route. In March this year, India had released a compendium of all the polices related with FDI with an objective of simplifying the norms.
FDI inflows in the first 10 months of 2009-10 were $22.9 billion.