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DPIIT releases next edition of consolidated FDI policy document
Oct-29-2020

The Department for Promotion of Industry and Internal Trade (DPIIT) under Union Ministry of Commerce and Industry, has released the next edition of its consolidated foreign direct investment (FDI) policy document, incorporating all the changes made over the past year. According to DPIIT, the new circular has come into effect from October 15, 2020.

The consolidated policy is a compilation of various decisions taken by the government with regard to FDI in different sectors. The DPIIT, which deals with FDI related matters, compiles all policies related to foreign investment regime into a single document to make it simple and easy for investors to understand. Investors would otherwise have to go through various press notes issued by the department, and the RBI regulations to understand the policy. The whole exercise is aimed at providing an investor-friendly climate to foreign players and, in turn attract more FDI to boost economic growth and create jobs.

The government has liberalised FDI policy in several sectors, including coal mining, digital news, contract manufacturing and single-brand retail trading. The DPIIT has also included the decision wherein the government in April made its prior approval mandatory for foreign investments from countries that share land border with India to curb ‘opportunistic takeovers’ of domestic firms following the COVID-19 pandemic. FDI in India has increased by 16 percent to $27.1 billion during April-August period of FY21 as compared to $23.35 billion received in same period last year.

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