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Setting up of joint ventures with foreign investors is allowed as per the foreign direct investment (FDI) policy. The policy allows FDI up to 100% in all sectors / activities except the following:
Activities / items that require an industrial licence; Proposals in which the foreign collaborator has an existing venture / tie-up in India in the same field; Proposals for acquisition of shares in an existing Indian company in the:
(i) financial services sector and
(ii) where SEBI (Substantial Acquisition of Shares Takeovers) Regulations, 1997 is attracted
All proposals falling outside notified sectoral policy / caps or under sectors in which FDI is not permitted.
FDI complements and supplements domestic investment and to some extent fills up savings - investment gap. It also helps in technology transfer and in improving the competitiveness of domestic industry thereby benefiting Indian industry.
This was stated by Shri EVKS Elangovan, Minister of State for Commerce & Industry, in a written reply in the Lok Sabha today.
Meanwhile, the government has announced the setting up of a Knowledge Commission, the details of which are to be finalized.
SB/MRS
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