Finance Minister Nirmala Sitharaman while presenting the Union Budget 2019 in the Parliament has proposed a plan to make the country a more 'attractive destination' for foreign direct investments (FDI)
Sitharaman increased the FDI limit from 49% to 100% and opened the scope of FDI's in various sectors like aviation, media, and animation.
She said, "I propose to further consolidate the gains in order to make India a more attractive foreign direct investment (FDI) destination."
Here is the proposal:
She added that India should become a part of the 'global financial system'
She said, "Its high-time, India not only gets integrated into the global value chain of production of good and services but also become part of the global financial system to mobilise global savings mostly institutionalised in pensions, insurance, sovereign wealth funds and so on."
The Finance Minister announced that the PM Modi-led NDA government is examining to organise an annual 'global investors meet' in the country.
She said, "The government is contemplating organising annual global investors meet in India using national infrastructure, investment fund as an anchor to get all three sets of global players top industrialists, corporate leaders, top pension insurance soverign wealth funds and top digital and venture funds also."
"I propose to increase the statutary limit for FDI investment in a company from 24% to sectoral foreign investement limits with the option given to the concerned corporate to limited to a lower threshhold," she added.
Sitharaman in her speech further proposed a merger of NRI portfolio investment scheme route with that of the foreign portfolio investment route.
She said, "Even though India is the world's top remittance recipient, NRI investment in Indian capital market is comparitively less. With a view to provide NRI's with a seemless access to Indian expertise, I propose to merge the NRI portfolio investment scheme route with the foreign portfolio investment route."
"New and innovative financial instruments, have been launched in the last 5 years like the infrastructure investment trust, real-estate investment trust, as well as models like the toll operate transfer (TOT) as part of the asset modernisation strategy for augmenting infrastructure investment," she added.