Faster KYC, nods key to boosting FDI flows: Piyush Goyal

Commerce and industry minister Piyush Goyal highlighted the importance of faster and more efficient know-your-customer (KYC) norms, mutual recognition agreements (MRAs) with foreign regulators, and streamlined investment approvals to boost foreign direct investment (FDI) flows during his official visit to Japan. Goyal emphasized that there are few sectors with restricted FDI and the Indian government is open to ideas from various industries.

He stressed the need for improved processes and procedures to facilitate the quick flow of FDI, leading to faster production and productivity. In manufacturing, Goyal aimed to achieve upstream and downstream indigenisation, including businesses either operating in India or coming to the country. For sectors like paint and semiconductors, the government is promoting domestic manufacturing of essential compounds and products.

Goyal also expressed his desire for the Bureau of Indian Standards to review regulations to enable companies to locate in India and develop high-tech production value chains. Regarding China trade, Goyal pointed out that India's goods exports to China in April-July FY27 grew by 35.97% year-on-year, while imports increased by 28.5%.

He noted that alternative routes, such as those being developed by Gulf countries, would help reduce over-reliance on China. While India's exports to China rose by 15% year-on-year during the first three weeks of August, the minister indicated that a decision on joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would require further deliberation.