FDI review draft to be ready this month, says Nath

FDI review draft to be ready this month, says Nath

New Delhi: The government is reviewing the norms governing Foreign Direct Investment (FDI) and a draft of the new policy will be ready this month, Commerce and Industry Minister Kamal Nath said on 1 October.

“The draft (of the new policy) will be ready during this month," he told reporters on the sidelines of an export award function here.

The Department of Industrial Policy and Promotion has been working on the draft for the last several months. The areas coming up for review may include sports goods and airport ground handling services, besides gas and petroleum.

Though India has relaxed FDI rules with 100% foreign investment allowed in many areas, it has kept caps for select fields like insurance, aviation and telecom.

Different options like automatic route are available to investors for clearances. But in large projects and those of strategic importance to the country, the proposals are cleared by the Foreign Investment Promotion Board in consultation with different ministries, including Defence and Home.

The country has been witnessing robust growth in FDI which touched about 15 billion dollars in 2006-07. The government aims to attract FDI in excess of $25 billion this fiscal.