India - Partner In Growth
Welcome to the August 4, 2016 bulletin of key policy decisions and high-impact news from India, presented by the Embassy of India, in Washington D.C.
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Govt. Increases Limit for Foreign Investment in Stock Exchanges to 15%  
The Government has approved raising the foreign shareholding limit from 5 percent to 15 percent in Indian stock exchanges for a stock exchange, depository, banking company, insurance company or commodity derivative exchange. The Government also allowed foreign portfolio investors to acquire shares through an initial allotment, besides the secondary market, in the stock exchanges. 

Govt. Abolishes Separate Guidelines for Establishing JV Firms by Defense PSUs 

The Government has abolished guidelines for establishing joint venture (JV) companies by state-owned defense firms. These 2012 guidelines will not be required for separate JVs by the state-owned firms. This move will help meet the Government's goal of creating self-reliance and indigenous firms in the defense sector. 

Govt. OKs New Policy for Awarding of Waterfront, Ports Land

The Government has stepped up uniformity and transparency in the ports industry by approving a policy for awarding waterfront and associated land to port-dependent industries in major ports. It will enable optimal utilization of capacities in major ports and increase revenue to the Major Port Authority. The policy will be applicable to all the major ports. 

Govt.  Approves Revised Cost Estimate for Autos R&D Project 
The Government has approved a revised cost estimate of $560 million for the National Automotive Testing and R&D Infrastructure Project. This approval ensures completion of an important initiative by the Government for the establishment of global test centers in India. This will address the R&D requirements of the automotive industry, full-fledged testing and homologation centers.
$600 Million to be Invested in Tripura State for Road, Infra Development 

The Ministry for Road, Transport and Highway has planned to invest about $600 million for the development of highways and infrastructure in Tripura state in northeast India. Four projects are currently on in the state, with a total length of 91 miles. An additional 83 miles are expected to be awarded soon. 

FDI Inflows Rise 7% to $10 Billion in Q1

Foreign direct investment (FDI) inflows grew 7 percent to $10 billion during the first quarter versus $9 billion in January-March 2015. According to Government data, the sectors that attracted maximum FDI during the period include computer hardware and software, services, telecommunications, power, pharmaceuticals and trading. India received maximum overseas inflows from the U.S., Singapore, Mauritius, Japan and the Netherlands. 

Minister: U.S. Firms' Investments in Tamil Nadu More than $4 Billion 

The southeastern Indian state of Tamil Nadu has attracted more than $4 billion in investments from U.S. companies in sectors such as automotive, textiles and pharma, state Industries Minister M.C. Sampath said. "The United States and Tamil Nadu share a good relationship in trade. The state is home to over 250 U.S. companies and has attracted cumulative investments of over $4 billion," he said.

Govt.: Pharma Sector Gets $748 million FDI in FY16 

The drugs and pharmaceuticals sector received foreign direct investment (FDI) of $748 million in fiscal year 2015-16, parliament was informed. FDI policy provides for 100 percent FDI under the automatic route in new pharma and up to 100 percent under the Government route in existing pharma. 

E-Commerce May Create 12 Million Jobs Over 10 Years 

The e-commerce sector has the potential to add 12 million new jobs in India over the next decade, according to a new study by HSBC Global Research. Nearly three-quarters of these new jobs in are expected to be in broad supply chain activities -- logistics, warehousing and courier -- and about 30 percent would be in customer care, information technology and management, the report said. 

Report: GDP Growth to Rise to 7.9% in FY 17 Due to Good Monsoon 

A recent report from global analytics firm CRISIL expects GDP growth to rise to 7.9 percent, agricultural growth to come in above trend at 4 percent and CPI inflation to remain contained at 5 percent in fiscal 2017, assuming rainfall is evenly distributed across time and regions.