The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated FDI policy document on March 31, incorporating changes made over the past year.
"The next edition of the Consolidated FDI Policy Circular i.e. Circular 1 of 2014 is scheduled to be issued on March 31 and will be effective from May 1," the Department of Industrial Policy and Promotion (DIPP) said. The previous (sixth) edition of the foreign direct investment (FDI) policy was issued in April 2013.
The DIPP, which is under the Ministry of Commerce and Industry, is the nodal agency on FDI policy. It compiles all policies related to India's FDI 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 industry department and RBI regulations to understand the policy.
The government updates the policy every year. The DIPP has invited public comments on the document till January 17, it said. FDI is considered crucial for economic development and India has taken several steps to attract such funds. Last year, the government relaxed norms in about a dozen sectors, including telecom, defence, PSU oil refineries, commodity bourses, power exchanges and stock exchanges.
FDI inflows during April-November of the current financial year declined 15 per cent to $ 12.6 billion from $ 14.7 billion in the same period a year earlier. India is projected to require about $ 1 trillion between 2012-13 and 2016-17, the 12th Five-Year Plan period, to fund infrastructure such as ports, airports and highways.
A decline in FDI would hurt the rupee, which had depreciated to a record low of 68.85 against the US dollar on August 28. The local currency has strengthened since then and was quoted at 62.38 per dollar at 1045 hrs on Monday.
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