FDI inflows at $20.9 billion during April-December 2009

Shri Pranab Mukherjee, Union Finance Minister, while presenting the Union Budget in Lok Sabha today, said that the foreign direct investment (FDI) inflows during the year have been steady in spite of the decline in global capital flows. India received FDI equity inflows of US $ 20.9 billion during April-December 2009.

The government has taken a number of steps to simplify the FDI regime, to make it easily comprehensible to foreign investors. For the first time, both ownership and control have been recognized as central to the FDI policy, and methodology for calculation of indirect foreign investment in Indian companies have been clearly defined. A consistent policy on downstream investment has also been formulated. Another major initiative has been the complete liberalization of pricing and payment of technology transfer fee, trademark, brand name and royalty payments. These payments can now be made under the automatic route.

The Minister said that the government also intends to make the FDI policy user-friendly by consolidating all prior regulations and guidelines into one comprehensive document. This would enhance clarity and predictability of our FDI policy to foreign investors.

Source : Equity Bulls

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