The government today unveiled a consolidated version of its existing foreign direct investment policy (FDI) which will now serve as the platform for future policy reforms in the ever-dynamic marketplace of foreign investment. By tying together 178 press notes,which made up the FDI policy since its conception in 1991,Minister of Commerce and Industry Anand Sharma said the potential for raking in $50 billion in foreign investment by 2012 and $75 billion by 2014 becomes greater. The merged policy will include norms which would require foreign companies who wish to invest in telecom,defence and security services in India to provide details of all directors. Under the former policy,only investments in telecommunications had to endure the additional scrutiny. Earlier this month,the government also declared that all proposals up to Rs 1,200 crore in foreign equity would be cleared by the finance minister without seeking approval of the Cabinet Committee on Economic Affairs. Consequently,the proposals up to the threshold of Rs 1,200 crore would be considered by the Foreign Investment Promotion Board (FIPB). Earlier,a proposal above Rs 600 crore FDI was referred to the Cabinet Committee on Economic Affairs (CCEA). Since 1991,there have been many changes in FDI policy as the policy keeps on evolving responding to demands and situations, Sharma told reporters today. In February,FDI in India grew by 15.4 per cent to $1.72 billion compared to February 2009,Singh said. In February 2009,FDI inflows were $1.49 billion. During April-February period of 2009-10 the inflows declined to $24.68 billion,from $25.39 billion in the same period last year,under the impact of global financial crisis.
