Sept. 5 – The Indian government is planning to rework the foreign direct investment (FDI) policy for holding companies. According to the regulations, joint venture companies with foreign equity will need to seek fresh approval from the Foreign Investment Promotion Board (FIPB) within 90 days while investing in downstream companies like subsidiaries.
The FIPB clearance will be mandatory to avoid imposition of penalty by the Reserve Bank of India (RBI). The government said detailed guidelines for downstream investments by joint ventures with foreign equity will be issued shortly. These companies will be given a three-month grace period for regularising downstream investments, according to the Economic Times.
July 16 – India's bringing the best of its legal and technology sectors together – the government is considering setting up a Right to Information call centre. After the success of the Right to Information Act enforced in 2005, which gives the citizens of India access to government information, empowering them to hold the state accountable, the call center will make the act more accessable.
If all goes well, the call center will allow applicants to seek information over the phone from any of the central government departments and organizations across the country, reported the Times of India.
The call centre will save citizens the trouble not only of writing and posting the RTI applications to different public authorities but also of buying postal orders or demand drafts for paying the nominal fee of Rs 10.
July 4 – India has revealed its first climate change plan before the G8 summit in Japan next week. The plan outlines eight "missions" for sustainable development – solar energy, energy efficiency, creating a sustainable habitat, conserving water, preserving the Himalayan ecosystem, creating a green India, creating sustainable agriculture and establishing a platform of "strategic knowledge for climate change.
While the plan lacks a proper budget and plan of action, the government seems keen to implement their enviromental ideas. A story by cnet news says that of all the plans, the Indian government seems most keen to implement solar energy. Given the resource is abundant in India, they plan to invest heavily in factories manufacturing solar cells.
June 30 – India and Japan inked a blockbuster currency swap deal on Sunday aimed at addressing short-term liquidity difficulties, the Reserve Bank of India (RBI) said.
The deal which enables both countries to swap yen or rupee against the U.S. dollar for up to $3 billion, was signed by Reserve Bank of India Governor Yaga Venugopal Reddy and Bank of Japan Governor Masaaki Shirakawa at Basel, Switzerland. This is India's first currency swap deal. Japan, however, has swap agreements with countries such as China, South Korea and Thailand.
Dezan Shira & Associates have announced their fourth India office is to open next month in Kolkata, following existing offices handling foreign direct investment into India in Delhi, Mumbai and Chennai. The firm, which advises multinational clients in legal and tax FDI matters in China, India and Vietnam, now has sixteen regional offices in Asia.