India Inc supports govt's new FDI liberalisation move

The FDI relaxation regime announced by the Modi government received positively from different sections of the industry.

Commenting on the announcements by the government on Monday, A Didar Singh, Secretary General, FICCI said, “Simplification in the policy framework governing investments in a whole host of sectors including strategic sectors like defence and aviation is a huge positive for the economy. The Modi administration through these moves has once again highlighted that reforms is a continuous process in order to capitalise the potential India offers”.

“After the first wave of big ticket FDI policy reforms announced on the eve of Diwali last year, the government has now announced the second wave of reforms again encompassing a broad range of sectors. These reforms (formal notification of which is awaited through the issuance of requisite press notes by the DIPP) will undoubtedly promote inflow of FDI into the country in manufacturing, services as well as trading,” Adhika Jain, Director, Grant Thornton Advisory said.

Devraj Singh, Executive Director – Tax & Regulatory Services, EY sharing his thoughts on FDI in aviation space said, “The increase in sectoral cap in the civil aviation will boost the airline connectivity to other regional upcoming hubs and will definitely promote the foreign airlines to set up their own shop without any joint venture partner in India.”

On single brand retail trading, Devraj Singh, pointed out that this policy change as to exemption of sourcing norms will definitely give confidence to the bigger players to set up shops into India as compliance of the sourcing condition at initial phase was difficult to comply.

Cross border mergers
FDI Policy change will definitely reduce the time line for the cross border mergers and acquisitions in pharmaceuticals sector which will lead to more funds coming into India in this sector, Singh observed.

Sarabjit Kour Nangra, VP Research- Pharma, Angel Broking, on new FDI norms for pharmaceuticals said, “The new norms will enable enhanced investments (in the form of M&A Activity) from the MNC companies, which believe in the growth potential of the Domestic Industry. We remain positive on the sector, maintaining our recommendations.”
DH News Service