Tremendous scope to improve processes, procedures to help faster flow of FDI, says Piyush Goyal
India is streamlining foreign direct investment processes and norms. The government seeks industry ideas to improve the investment regime further. Discussions are ongoing regarding trade pacts with several countries and blocs. Efforts focus on promoting end-to-end manufacturing and self-reliance in key sectors. Production-linked incentives will be considered for sectors facing cost disadvantages.
Commerce Minister Piyush Goyal emphasized the potential for enhancing the efficiency of process and procedure frameworks to expedite the inflow of foreign direct investment (FDI) in India. Goyal highlighted that there are limited sectors where FDI is restricted, and the government remains open to industry suggestions for further improvements in the investment framework. The primary focus is on refining processes and procedures to facilitate a faster flow of FDI and increase investor confidence, according to Goyal.
The minister underscored the government's willingness to consider proposals aimed at improving the ease of doing business for foreign investors. Practical steps, such as streamlining KYC norms and establishing mutual recognition agreements with international regulators, were proposed to accelerate the approval process for FDI. Goyal also mentioned the consideration of raising the threshold for capital investments requiring Cabinet Committee on Economic Affairs approval to Rs 15,000 crore, up from the current Rs 5,000 crore, to boost the investment climate further.
Moreover, Goyal expressed openness to exploring the inclusion of Japan in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), although no final decision has been made. India is actively negotiating trade agreements with various countries and groups, including Israel, Chile, and the Gulf Cooperation Council, among others. Goyal reaffirmed India's commitment to bilateral trade pacts and highlighted ongoing negotiations with the Mercosur bloc.
In terms of manufacturing, Goyal stressed efforts towards end-to-end upstream and downstream indigenisation, aiming for a self-reliant approach across various industries. This includes promoting the manufacturing of essential materials like titanium dioxide for the paint industry and a comprehensive value chain in semiconductors.
Goyal also addressed concerns regarding the misuse of exemptions on semiconductor materials under trade agreements with Japan, emphasizing ongoing efforts to safeguard against such misuse while honoring CEPA commitments.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
