Government Clears 29 FDI Proposals Worth US$119 million this Week

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Mar. 6 – India’s foreign investment promotion board on Wednesday gave the green signal to allow 29 FDI proposals worth Rs 6.16 billion (US$119 million) to be passed. Due to the gloomy global economic scenario, the government has eased FDI entry regulations allowing many more companies entry into the vast Indian market than before.

The largest deal to be passed on Wednesday was hospitality group AAPC Singapore Pte. Ltd.’s proposal of Rs 3.65 billion (US$70.5 million). AAPC plans to set up a wholly owned venture to construct, develop, own and manage low-budget hotels in India. Other sectors that were given FDI clearance included cargo – bulk handling, telecom and retail clothing sectors.

While the government has eased FDI regulations, it has also become more stringent to see that foreign companies do not enter restricted sectors through the back door. India prohibits FDI in multi-brand retail, atomic energy, the lottery business, gambling and betting, chit funds and nidhi firms. Besides, an FDI ceiling has been put on sectors like insurance, aviation, asset reconstruction, private sector banking, FM radio, cable network and commodity exchanges.