The Foreign Investment Promotion Board (FIPB) headed by Finance Secretary Rajiv Mehrishi will take up 41 Foreign Direct Investment (FDI) proposals in meeting on 31st July. In these proposals 9 are from pharmaceutical sector. Proposals from Akumentis Healthcare, Cairnhill, Windlas Biotech, Kinedex Healthcare, New India Biopharma, Indian Herbs Speciality, and Elanco are among the pharmaceutical sector and bio-tech companies would be examined.
Other proposals to be taken up are from companies such as Capricorn Ventures, Almondz Insurance Brokers, IIFL Holdings, Encore Reconstruction, BTI Payments, Bloomberg Data Services, Tata Global Beverages Ltd and News Laundry Media, INX Music, India Value Fund, Howell Energy Systems, and Huawei Telecommunications (India) Company.
Kotak Mahindra Bank has approached the panel to seek consent for increasing foreign investment capital in bank to 55 percent. The Reserve Bank has blocked overseas investments in the bank after foreign shareholding in it hit the acceptable entrance following the merger of Kotak Bank with ING Vysya Bank.
Investments from FIIs, FPIs and foreign banks have reached 48.55 percent in the combined entity. FIPB is a single window clearance system for proposals on FDI. The FIPB takes up FDI proposals for consideration where the approval route is not automatic, but proposals in some segments considered sensitive have to be first cleared by the FIPB.
During April-January in 2015, FDI in India has increased by 36 percent year-on-year to USD 25.52 billion. Government has taken an uncontrollable sliding movement in recent times to liberalise policies for foreign investors in the country. FDI capital in defence and insurance has been raised, while the railways sector has been opened for foreign investment.
Foreign investments are considered key factor for India, which needs around USD 1 trillion over five years (2012-17) to renovate its infrastructure sector such as ports, airports and highways to boost growth. Sectors such as services, telecom, metallurgical industries, power, computer hardware & software and construction are termed to be the lucrative sectors for FDI.
