Arun Jaitley, who is in the US to attend the annual meetings of the IMF and the World Bank, said suddenly a lot of joint ventures are coming up for investment in the defence sector.
The latest consolidated FDI policy, which usually factors in various changes over the past one year to make it easier for foreign investors to get informed of various rules, also formally clarified that the restriction of 25 per cent on sales of one vendor through an e-commerce marketplace will be computed on a financial year basis
While the government remained non-committal on the outcome of the meeting, Jaitley is believed to have discussed a few proposals for further liberalisation in certain sectors including retail and construction.
The government is relaxing norms to provide investor friendly climate to foreign players, and in turn attract more FDI to boost economic growth and create jobs. Foreign direct investment in the country grew by 9 per cent to USD 43.47 billion in 2016-17.
FDI increased 10.6 percent on an annual basis in rupiah terms to 109.9 trillion rupiah and by 15.5 percent in dollar terms to $8.2 billion, in the first quarter, actual investment increased only 1 percent in rupiah terms from a year earlier and 6 percent in dollar terms.
The meeting assumes importance as the government is considering relaxing FDI norms in several sectors, including
construction and retail. Proposal to ease rules in print media, construction, single brand and multi brand retail trading is also expected to be on the table.
Foreign investments in bulk of the sectors are allowed under the automatic route. Currently, only 11 sectors, including defence and retail trading, require government approval for Foreign Direct Investment. FDI in 2016-17 grew by 9 per cent.
Last month, India scrapped the 25-year old Foreign Investment Promotion Board (FIPB) as it looks to attract more FDI by providing quick approvals under a single-window clearance system.
The amendment provides that capital gains exemptions for income arising from the transfer of shares acquired on or after October 1, 2004, will be available only if the acquisition was chargeable to STT.
India had last month scrapped the 25-year old foreign investment advisory body FIPB as it looks to attract more FDI by providing quick approvals under a single-window clearance system.
He said unless the opening of the FDI rules is accompanied by some reasonable possibility of getting orders, an investor is not going to set up an establishment in the country.
FDI by capital investment saw an increase of 2 per cent to $62.3 billion in 809 projects during 2016 in India.
The treaty amendment is also expected to impact the tax treaty with Singapore, which mirrored the capital gains exemption being provided to investments routed through Mauritius earlier.
The Parliamentary Standing Committee on Commerce had suggested that a study group be set up to examine the effect of FDI on brownfield pharma or operational firms.
The foreign visits undertaken by the Prime Minister have been instrumental in creating a positive momentum and boosting the bilateral relations, Nirmala Sitharaman said.