Tags:
Journalism of Courage
Commerce and industry minister Kamal Nath said today that the review of the country’s foreign direct investment (FDI) policy, currently being undertaken by the government, would be completed in six to eight weeks. The FDI policy is being reviewed with the aim of plugging loopholes that lead to investment ceiling violations by companies in various sectors.
Speaking on the sidelines of a Confederation of Indian Industry (CII) meeting with Mexican economy minister Eduardo Sojo, Nath informed that the review would deal extensively with different aspects of direct and indirect holdings and beneficiary ownership.
“It will lay down clear-cut criteria for identifying direct and indirect holding and beneficial ownership. The new rules will not have any retrospective affect,” Nath added. Thus, agreements like the Vodafone-Hutch deal would not face any obstacles.
Referring to India’s economic relations with Mexico, Nath said, “Indian government will look into the possibility of a Preferential Trade Agreement (PTA). India is not only seeking FDI but also investing in the global market and can look at Mexico as an investment destination.”
The Mexican minister said, “Mexico is looking at easing visa problems. Our country will further open up business opportunities for Indian companies. Mexico’s National Development Plan provides opportunities for public private partnerships (PPPs). Indian companies should look for opportunities in the areas of pharmaceuticals, agriculture and technology through PPPs.”
Sojo, however, ruled out any possibility of private entry into the oil and gas industry in his country as that is considered a sensitive sector.
