Union Cabinet approves simplification and liberalisation of FDI Policy, 2016
The Union Cabinet has given its approval for simplification and liberalisation of the Foreign Direct Investment (FDI) Policy, 2016 in various sectors announced in June, 2016. The radical amendments to FDI policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. Its main aim is to allow larger FDI inflows in the country that will contribute to growth of investment, incomes and employment.
Changes in FDI Policy regime Defence Sector:
FDI beyond 49% has been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons. The condition of access of state of the art technology has been removed and it has been modified to access to modern or for other reasons. FDI limit also has been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act, 1959.
Food Products manufactured or produced in India:
100% FDI under government approval route for trading in respect of food products manufactured in India. Pharmaceutical Sector: 100% FDI under automatic route in greenfield pharmaceuticals. FDI up to 100% under government approval in brownfield pharmaceuticals also has been approved and 74% FDI under automatic route in Brownfield pharmaceuticals.
Civil Aviation Sector:
100% FDI under automatic route in Brownfield Airport Projects. FDI limit raised to 100% in Scheduled Air Transport Service and regional Air Transport Service. Animal Husbandry: 100% FDI allowed in Animal Husbandry (including breeding of dogs), Aquaculture, Pisciculture and Apiculture under Automatic Route without requirement of controlled conditions.
Private Security Agencies:
49% FDI permitted under automatic route and FDI beyond 49% and up to 74% will be permitted through government approval route. Establishment of branch office, liaison office or project office: No approval from Reserve Bank of India or separate security clearance would be required. This exemption will be application in cases where FIPB has approved it or license and permission already has be given by the concerned Ministry. Single Brand Retail Trading: Entities undertaking single brand retail trading have been relaxed from local sourcing norms up to 3 years. Entities engaged in of single brand retail trading of products having ‘state-of-art’ and ‘cutting edge’ technology have been relaxed from local sourcing norms up to 5 years. Comment With these radical changes in FDI Policy, Union government has permitted 100% FDI under government approval route for almost every sector, including defence. However there is still exception in few sectors mentioned in the small negative list. FDI continues to be prohibited in atomic energy, lottery, gambling, real estate and Real Estate Investments Trusts (REIT) and railways operations.
Background
Since 2014,Union Government has brought major FDI policy reforms in a number of sectors, including Insurance, Pension Sector, Defence, Construction Development and Broadcasting etc. Measures undertaken by the Union Government have resulted in increased FDI inflows at 55.46 billion dollars in the financial year 2015-16. This was the highest ever FDI inflow in India for a particular financial year.
Changes in FDI Policy regime Defence Sector:
FDI beyond 49% has been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons. The condition of access of state of the art technology has been removed and it has been modified to access to modern or for other reasons. FDI limit also has been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act, 1959.
Food Products manufactured or produced in India:
100% FDI under government approval route for trading in respect of food products manufactured in India. Pharmaceutical Sector: 100% FDI under automatic route in greenfield pharmaceuticals. FDI up to 100% under government approval in brownfield pharmaceuticals also has been approved and 74% FDI under automatic route in Brownfield pharmaceuticals.
Civil Aviation Sector:
100% FDI under automatic route in Brownfield Airport Projects. FDI limit raised to 100% in Scheduled Air Transport Service and regional Air Transport Service. Animal Husbandry: 100% FDI allowed in Animal Husbandry (including breeding of dogs), Aquaculture, Pisciculture and Apiculture under Automatic Route without requirement of controlled conditions.
Private Security Agencies:
49% FDI permitted under automatic route and FDI beyond 49% and up to 74% will be permitted through government approval route. Establishment of branch office, liaison office or project office: No approval from Reserve Bank of India or separate security clearance would be required. This exemption will be application in cases where FIPB has approved it or license and permission already has be given by the concerned Ministry. Single Brand Retail Trading: Entities undertaking single brand retail trading have been relaxed from local sourcing norms up to 3 years. Entities engaged in of single brand retail trading of products having ‘state-of-art’ and ‘cutting edge’ technology have been relaxed from local sourcing norms up to 5 years. Comment With these radical changes in FDI Policy, Union government has permitted 100% FDI under government approval route for almost every sector, including defence. However there is still exception in few sectors mentioned in the small negative list. FDI continues to be prohibited in atomic energy, lottery, gambling, real estate and Real Estate Investments Trusts (REIT) and railways operations.
Background
Since 2014,Union Government has brought major FDI policy reforms in a number of sectors, including Insurance, Pension Sector, Defence, Construction Development and Broadcasting etc. Measures undertaken by the Union Government have resulted in increased FDI inflows at 55.46 billion dollars in the financial year 2015-16. This was the highest ever FDI inflow in India for a particular financial year.
Union Government Constitutes AK sinha committee to study silt in river Ganga in Bihar
The Union Government has constituted four member expert committee to study silt in river Ganga in Bihar. The team will be headed by member of Ganga Flood Control commission A .K. Sinha. The committee will submit its report within 10 days.
Other members of committee: Chief Engineer of Central Water Commission SK Sahu, Prof. of IIT AK Gosain and National Disaster Management Authority member Dr. Rajnish Ranjan.
Background
The committed has been constituted based on outcome of meeting Prime Minister Narendra Modi and Bihar Chief Minister Nitish Kumar. Bihar CM had requested PM to send an expert team to study silt in Ganga which caused devastating prevailing flood in the state. Besides, he also had requested Central Government to frame National Silt Policy to sort out various problems related to rivers throughout the state.
Other members of committee: Chief Engineer of Central Water Commission SK Sahu, Prof. of IIT AK Gosain and National Disaster Management Authority member Dr. Rajnish Ranjan.
Background
The committed has been constituted based on outcome of meeting Prime Minister Narendra Modi and Bihar Chief Minister Nitish Kumar. Bihar CM had requested PM to send an expert team to study silt in Ganga which caused devastating prevailing flood in the state. Besides, he also had requested Central Government to frame National Silt Policy to sort out various problems related to rivers throughout the state.
CCI fines 10 cements companies and CMA for Cartelisation
The Competition Commission of India (CCI) has imposed penalties on 10 cement companies and their umbrella association – Cement Manufacturers Association (CMA) for cartelisation. The CCI has levied penalties on 10 cement companies viz. ACC, ACL, Binani, Century, India Cements, JK Cements, Lafarge, Ramco, UltraTech and Jaiprakash Associates.
What is the case?
What is the case?
The Builders Association of India (BAI) had filed complaint against the cement companies and the CMA alleging in fixing collectively prices of cement.
It was alleged that these cement companies and the CMA shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted output and supplies.
Their collective was contravention of certain provisions of the Competition Act, 2002.
It was also detrimental to the interests of consumers and the economy as cement is a critical basic input in construction and infrastructure industry.
About Competition Commission of India (CCI) The CCI is quasi-judicial statutory body established under The Competition Act, 2002.
It established in 2003 to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade.
Its predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission) which was functional prior to 1991 Economic Reforms.
It was alleged that these cement companies and the CMA shared details relating to prices, capacity utilisation, production and dispatch and thereby restricted output and supplies.
Their collective was contravention of certain provisions of the Competition Act, 2002.
It was also detrimental to the interests of consumers and the economy as cement is a critical basic input in construction and infrastructure industry.
About Competition Commission of India (CCI) The CCI is quasi-judicial statutory body established under The Competition Act, 2002.
It established in 2003 to eliminate practices that adversely affect competition in different industries and protect interests of consumers and ensure freedom of trade.
Its predecessor was the MRTPC (Monopolies and Restrictive Trade Practices Commission) which was functional prior to 1991 Economic Reforms.
GK update
1. What is the position of India in 2016 Logistics Performance Index (LPI)?
Ans: Goa
5. Which union ministry has signed MoU with Amar Chitra Katha to publish and distribute a comic book on Swachh Bharat Mission?
Ans: Ministry of Urban Development
6. Who has been appointed as MD,CEO of SBI Mutual Fund?
Ans: Anuradha Rao
7. Who has been appointed as New Chancellor of TERI ( The Energy and Resource Institute)?
Ans: Ashok Chawla
8. Name the first Asian ecologist nominated for IUCN (International Union for Conservation Of Nature) Award.
Ans: Dr Bibhuti Lahkar
9. Name the only Indian in Forbes most powerful people in the financial world list.
Ans: Uday Kotak
10. Name the new governor of Tamil Nadu.
Ans. C. Vidyasagar Rao
Ans:35th
2. Majuli which will become the first river Island district of India is located in which state?
Ans: Assam
3. with which country the Logistics Exchange Memorandum of Agreement has been signed by India?
Ans: United Sates
4. Which state become the 15th state to ratify GST Bill?Ans: Goa
5. Which union ministry has signed MoU with Amar Chitra Katha to publish and distribute a comic book on Swachh Bharat Mission?
Ans: Ministry of Urban Development
6. Who has been appointed as MD,CEO of SBI Mutual Fund?
Ans: Anuradha Rao
7. Who has been appointed as New Chancellor of TERI ( The Energy and Resource Institute)?
Ans: Ashok Chawla
8. Name the first Asian ecologist nominated for IUCN (International Union for Conservation Of Nature) Award.
Ans: Dr Bibhuti Lahkar
9. Name the only Indian in Forbes most powerful people in the financial world list.
Ans: Uday Kotak
10. Name the new governor of Tamil Nadu.
Ans. C. Vidyasagar Rao