 |
|
Present FDI Policy on Agriculture
and Plantation
MORE
[+]
|
|
| |
Present FDI Policy on Agriculture
and Plantation
|
|
| |
|
|
|
|
|
|
| |
|
|
The present policy for FDI in Agriculture
and Plantation sector is as under:
i. FDI
up to 100% is permitted under the automatic route only in the under-mentioned
activities viz. Floriculture, Horticulture, Development of Seeds,
Animal Husbandry, Pisciculture, Aqua-culture and Cultivation of
Vegetables & Mushrooms, under controlled conditions and services
related to agro and allied sectors
|
|
ii.
FDI up to 100% with prior Government
approval is permitted in Tea plantation subject to the conditions
of divestment of 26%equity of the company in favour of an Indian partner/
Indian public within a period of five years; and prior approval of
the State Government concerned in case of any future land use change.
iii.
Besides the above two, FDI is not allowed in any other agricultural
sector/activity |
|
| |
|
|
|
|
|
|
| |
|
|
|
| |
|
BPO Exports Update
|
|
| |
|
The
total value of Information Technologies Enabled Services (ITES)
– Business Process Outsourcing (BPO) exports, as available,
is as (a) 2004-2005 US$5.2 billion, (2005-2006 US$6.3 billion.
The Government has taken various steps to promote the growth
of IT Software and Services Industry, such as: approvals for
all foreign direct investment proposals relating to IT Sector
are put under the automatic route, peak rate of customs duty
has been reduced, customs duty on Information Technology Agreement
(ITA-1) items has been abolished, Special Economic Zones (SEZs)
are being set up, Income-Tax exemption on export profits is
allowed to Software Technology Parks (STPs) /Export Oriented
Units (EOUs) etc.
As per NASSCOM, the share of large contracts won by Indian service
providers has increased from 1% in 2003 to 5% in the first half
of 2006. Some of the recent big deals have been won by M/s Hindustan
Computers Limited, Infosys, Satyam, TCS and Wipro. |
|
| |
|
|
|
|
| |
FDI inflows up by record 47% in
first quarter
|
|
| |
|
|
|
|
|
|
| |
Inflows of foreign direct investment
(FDI) into India (equity capital components only) during the first
quarter of the current financial year 2006-07 (April-June), was
US $ 1.74 billion compared to US$ 1.18 billion in the same quarter
of 2005-06, showing a record increase of nearly 47% over the previous
year. FDI inflows (equity capital components only) during the month
of June 2006 surged by a record 102%, having increased to US $ 534
million from US $ 264 million in June 2005.
Announcing this at a news conference here today, Shri Kamal Nath,
Union Minister of Commerce & Industry, stated that the following
major new investments were expected in the current year:
a) General Motors, USA is setting
up a car manufacturing facility in Maharashtra at a cost of US$
300 million. An agreement with Govt. of Maharashtra has been signed
for setting up a plant at Talegaon Dabadi on the Pune-Mumbai Highway
and 300 acres of land has been acquired by the company. Production
will begin in 3rd quarter of 2008.
b) Nissan and Suzuki of Japan
have also decided to jointly collaborate to produce half-a-million
passenger cars/mini vans at Manesar near Delhi. The total investment
could be between US$ 700 to 800 million over the next three years
and it will be a base to export 0.34 million new ‘A’
|
|
segment passenger vehicles to Europe. A large delegation of the
two companies is visiting India in the first week of September 2006
to review the arrangements.
c) Mitsubishi Chemicals has
approved US$ 370 million expansion programme of its existing petro-chemicals
plant at Haldia.
d) Honda is expanding its facility
at Noida and is investing US$ 200 million to produce new brands/models
of cars.
e) The Sem India – Semiconductor
manufacturing unit is being set up near Hyderabad.
The Minister said that the continuous rationalisation / liberalisation
of India’s FDI policy and simplification of procedures had
attributed to the steady increase in FDI inflows into the country,
in particular the surge witnessed in the first quarter of this fiscal.
“Foreign Direct Investment (FDI) plays an important role in
the long term economic development of the country, not only as a
source of capital but also for enhancing competitiveness of the
domestic economy through transfer of technology, strengthening infrastructure,
raising productivity and generating new employment opportunities”,
he has said.
“The investment climate in India is highly conducive for investments
by investors particularly from Taiwan, Korea and Singapore, who
are looking at sites in India to locate their manufacturing facilities.
A business
|
|
delegation
is visiting Taiwan later this month to attract investments particularly
in electronic hardware, textile machinery and leather goods”,
Shri Kamal Nath added.
According to the details available upto May 2006, the 10 sectors attracting
highest FDI into India are: electrical equipments (including computer
software & electronics); telecommunications (radio paging, cellular
mobile, basic telephone services); services sector (financial &
non-financial); transportation industry; fuels (power + oil refinery);
chemicals (other than fertilisers); food processing industries; drugs
& pharmaceuticals; cement and gypsum products; and metallurgical
industries.
The 10 top investing countries are: Mauritius, USA, Japan, Netherlands,
UK, Germany, Singapore, France, South Korea and Switzerland.
According to the Reserve Bank of India (RBI)’s revised data as
per international practices, (i.e., including equity plus reinvested
earnings and other capital) cumulative total FDI inflows into India
from August 1991 to April 2006 were US $ 49 billion. As per the Department
of Industrial Policy and Promotion (DIPP)’s data, (comprising
equity capital only), the cumulative amount of FDI inflows into India
from August 1991 to May 2006 were US $ 40 billion. The FDI inflows
in 2005-06 (comprising equity capital, reinvested earnings and other
capital) was US $ 7.7 billion, representing a rise of over 37% over
the previous year. FDI inflows (equity capital only) during 2005-06
was valued at US $ 5.5 billion, showing a record growth of over 72%
over 2004-05. |
|
| |
|
|
|
|
|
|
|
