What Is India News Service
Thursday, November 08, 2007


Developing countries, increasingly see foreign direct investment (FDI) as a source of economic development, modernization and employment generation, and have liberalized their FDI regimes to attract investment.  Indian Government has permitted access to FDI through automatic route, except for a small negative list.

In January 2004, guidelines on equity cap on FDI, including investment by NRIs and Overseas Corporate Bodies (OCBs) were revised as under: -

  • FDI up to 100 per cent is permitted in printing scientific and technical magazines, periodicals and journals subject to compliance with legal framework and with the prior approval of the Government.

  • FDI up to 100 per cent is permitted through automatic route for petroleum product marketing, subject to existing sectoral policy and regulatory framework.

  • FDI up to 100 per cent is permitted through automatic route in oil exploration in both small and medium sized fields subject to and under the policy of the Government on private participation in exploration of oil fields and the discovered fields of national oil companies.

  • FDI up to 100 per cent is permitted through automatic route for petroleum products pipelines subject to and under the Government policy and regulations thereof.

  • FDI up to 100 per cent is permitted for Natural Gas/LNG pipelines with prior Government approval.

However, India still has a heavy regulation burden among other countries, e.g the time taken to start business or to register a property is higher in India. Similarly, indirect taxes, entry-exit barriers and import duties have been a major detriment to investment climate in India.


The latest export data released for the month of September 2007 by the Commerce Ministry has surprised many. (Export Resilience , Deccan Herald, Editorial, The Deccan Herald, Nov 08, 2007)

A full meeting of the Planning Commission here tomorrow will discuss the Eleventh Plan draft document that has built a strong case for relaxing Foreign Direct Investment (FDI) norms in key sectors like insurance, private banking, single brand . . . . (Fdi Rules May Be Relaxed, Statesman, Correspondent or Reporter, Nov 08, 2007)

The acronym CAMEL (company, assets, management, earnings and liquidity) is an excellent prod to a financial analyst’s memory, serving as it does to picturesquely remind him of the five central aspects of the company he seeks to analyse. (Camel In A Cage, Business Line, S. Murlidharan , Nov 08, 2007)

PAKISTAN’S economy recorded one of the fastest growth rates in Asia during fiscal year 2006-07. The real GDP growth accelerated to seven per cent that was surpassed only by China and India”. (Higher Growth, Higher Inflation, Dawn, Sultan Ahmed, Nov 08, 2007)

The stock market on Tuesday collapsed from the day’s high and even ended 190 points lower in volatile trade on heavy profit sales by investors and a slowdown in FII activity. (Sensex Sheds 190 Points, Hindu, Correspondent or Reporter, Nov 07, 2007)

Battling a stiff Left resistance, an apparently confident Congress-led UPA government declared today that the civil nuclear cooperation with the United States of America and other countries, as and when it succeeded, would strengthen the . . . . (‘N-Deals Will Boost Energy Security’, Statesman, Correspondent or Reporter, Nov 07, 2007)

Recent events in the markets confirm the suspicion that the stock market tail is wagging the economy dog as never before. (Tail Wagging The Dog, Frontline, V. Sridhar, Nov 07, 2007)

PARTICIPATORY Notes (PNs) are instruments held by entities that are otherwise not allowed to invest in Indian markets by the market regulator, the Securities and Exchange Board of India (SEBI). (All About Participatory Notes, Frontline, Correspondent or Reporter, Nov 07, 2007)

Even as the country’s policymakers are mulling whether or not to allow foreign direct investment (FDI) in commodity futures exchanges, comes a report from Financial Markets International (FMI) making out a case for allowing foreign . . . . . (Us Consulting Firm Makes Out Case For Fdi In Commodity Bourses, Business Line, Correspondent or Reporter, Nov 03, 2007)

If the conversion of a sub-account to an FII causes a ‘transfer’ of securities from the sub-account to the FII, it would trigger a taxable event. (What Happens When Sub-Accounts Convert To Fii Status, Business Line, D. Murali , Nov 03, 2007)

The government on Friday, cleared 12 Foreign Direct Investment (FDI) proposals that will bring in Rs 212 crore, of which the largest chunk will be by US-based Millennium India Acquisition Company. (Govt Clears 12 Fdi Proposals , Deccan Herald, Correspondent or Reporter, Nov 03, 2007)

In what could set the pitch for another confrontation between the Left and the UPA Government, the Planning Commission is set to recommend aggressive measures to eliminate FDI limits in several key sectors. (Plan Panel Wants Fdi Cap In Key Sectors To Go, Pioneer, Santanu Banerjee, Nov 03, 2007)

The much-awaited decision on foreign direct investment (FDI) in commodity exchanges is expected to be taken by the Cabinet Committee of Economic Affairs (CCEA) in its next meeting shortly, a top official has said. (Decision On Fdi In Commodity Exchanges Soon, Pioneer, Correspondent or Reporter, Nov 03, 2007)

The rupee on Friday ended barely changed at 39.31/32 a dollar, moving in line with fluctuations in the local equity market, which gained by 1.28 per cent at close. (Re Ends Barely Changed Against Dollar, Singapore Times, Correspondent or Reporter, Nov 03, 2007)

The latest Communist Party of China Congress saw Hu Jintao emerge for his second five-year term as a stronger leader. (Skirting The Border, Hindustan Times, Correspondent or Reporter, Nov 02, 2007)

Apropos Mr Chandan Mitra's article, "Class Apart" (October 21), the review of 10 MPs interacting with teachers at the Yale University was thought provoking. (China Leaps, India Lags, Pioneer, Prafull Goradia, Nov 02, 2007)

THE relentless capital inflows pushed the BSE Sensex to 20,000 on Monday, making India the 20th nation to achieve this distinction. Managing excess liquidity is a challenge the government faces. (Party At The Bourses, Tribune, Editorial, The Tribune, Oct 31, 2007)

Increase in CRR by RBI may have limited impact. (Taming Liquidity , Deccan Herald, Editorial, The Deccan Herald, Oct 31, 2007)

Market capitalisation is not the best indicator. Nor may Reliance Petroleum equity have been counted properly. (Let The Rupee Go, Indian Express, Bibek Debroy, Oct 31, 2007)

During the 1990s Pakistan’s annual growth rate averaged about 3 percent. (Economic Consequences Of Talibanisation , Daily Times, Editorial, Daily Times, Oct 31, 2007)


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