India unveils consolidated FDI policy framework
31 Mar 2010
Union minister of commerce and industry Anand Sharma today released the final document of the FDI Policy Framework, which is a consolidation of all prior regulations.
Speaking on the occasion, Sharma said the current exercise had been initiated with the aim of integration of all prior regulations on FDI, contained in FEMA, RBI circulars, various press notes etc, into one consolidated document, so as to reflect the current regulatory framework.
He, however, said the intention of this exercise was not to make any changes in the extant guidelines, but to deal with them comprehensively, so as to make them more comprehensible to all investors and stakeholders, over one single platform.
The latest press not will replace all previous press noted on FDI regulation.
"One of the most significant aspects is that all the press notes issued in the past will be rescinded with the issue of this press note, which would now comprise the single document on FDI policy. As such, this marks the inception of a whole new chapter on FDI policy", the minister stated.
Speaking to the media, the minister said that such consolidation would make available all information on FDI policy at one place, which in turn would lead to simplification of the policy; greater clarity of understanding of foreign investment rules among foreign investors and sectoral regulators, as also predictability of policy.
