Welcome to the latest bulletin of key policy decisions and high-impact news from India, presented by the Embassy of India, in Washington D.C.
Key Policy Decisions


Defense Minister: 'Significant Step' to Raise Foreign Investment in Defense            


Defense Minister Arun Jaitley said the decision to raise the foreign direct investment limit in the defense sector to 49 percent is a "significant step" in establishing an indigenous military industry."



Foreign Investment Cap in Insurance Raised to 49%

The much-awaited increase in the foreign direct investment limit in the insurance sector to 49 percent will help the insurance industry by giving companies easier access to capital, and by potentially acting as a trigger for the listing of insurance companies, giving investors a true assessment of their value. 

Finance Ministry: Insurance Bill May be Taken Up in Current Session of Parliament 

Govt. Not Seeking Retrospective Taxes on Investors    


The Finance Ministry has sought to allay the concerns of investors and industry over some of the Budget proposals such as a higher long-term capital gains tax on debt mutual funds and the application of tax-avoidance rules. Revenue Secretary Shaktikanta Das suggested that investors in debt mutual funds might not have to pay taxes retrospectively for units redeemed before this year's Budget was presented.



Revenue Secretary: Govt. Yet to Take a Call on implementing General Anti-Avoidance Rules.

The Government is yet to take a call on the implementation of the General Anti-Avoidance Rules (GAAR), Revenue Secretary Shaktikanta Das said.  

Guarantees Given for Non-Resident Investments 

In order to provide operational flexibility and ease procedures, the Reserve Bank of India has decided to permit Authorized Dealer Category-I banks to issue bank guarantees, without prior approval of the Reserve Bank, on behalf of a non-resident acquiring shares or convertible debentures of an Indian company through open offers, delisting and exit offers, subject to certain conditions.        

India Goes Big on Tech with First-Time $1.6 Billion Start-Up Fund

The Government's first Union budget has come out strongly in support of India's high-growth tech industry. Finance Minister Arun Jaitley announced a $1.6 billion Government fund for tech start-ups to be financed by equity and soft loans. This is the first time such a tech fund has been established by the Indian government.      

High-Impact News

U.S. Investors Welcome PM Modi's Maiden Budget    


The maiden Budget of the Modi Government has been hailed by American experts and corporate sector here as a step in the right direction to generate employment and foster growth. They said Finance Minister Arun Jaitley has opened the door to a much wider level of US involvement in India's development plans in the coming years. 

Foreign Institutional Investment Hits $20 billion So Far This Year

Overseas investors have pumped a staggering $20 billion into the Indian market in the first half of the year. Net investments by foreign investors into equity markets stood at $9.9 billion during January-June 2014, while the same for debt markets was at $10.4 billion.

Foreign Investors Pour $2.8 billion More into Indian Markets in July, Endorsing Modi

M&A Activity in India up 47% to $17 Billion in 2014

Industrial Growth at 19-Month High

Industrial production is at a 19-month high, growing 4.7 percent in May on improved performances across sectors, including manufacturing, mining and power. The Index of Industrial Production for the April-May period grew 4 percent over the comparable period last year.


Reserve Bank 'Determined' to Bring Down Consumer Inflation
Reserve Bank of India Governor Raghuram Rajan said the central bank is "determined" to make sure consumer inflation eases down along a "glide path." A Reserve Bank panel in January recommended bringing consumer-price index inflation down to around 8 percent by the end of January 2015 and to 6 percent by the end of the following year

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