Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman on Friday said that foreign direct investment (FDI) up to 100% is allowed on the automatic route in most sectors and for most activities, subject to applicable laws and regulations; security and other conditionalities.
In her written reply to a question raised in the Lok Sabha, Sitharaman, however, said that FDI is prohibited in the lottery business, including government/private lottery, online lotteries etc; gambling and betting, including casinos etc.; chit funds; Nidhi company; trading in transferable development Rights (TDRs); real estate business of construction of farm houses; manufacturing of cigars, cheroots, cigarillos and cigarettes; of tobacco or of tobacco substitutes; activities/sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Suburban corridor projects through PPP, High speed train projects, Dedicated freight lines, Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities, Railway Electrification, Signaling Systems, Freight terminals, Passenger terminals, Infrastructure in industrial park pertaining to railway line/ sidings including electrified railway lines and connectivities to main railway line and Mass Rapid Transport Systems).
She also said that FDI, in various sectors, is allowed, up to the different limits, varying from 20% to 100% subject to applicable laws/regulations; security and other conditionalities. On the issue of industrial parks, the minister said India has signed one MoU on "Cooperation on Industrial Parks in India" with China in June this year. This was followed up by the Industrial Extension Bureau of the Gujarat Government signing an MoU with the China Development Bank Corporation for supporting setting up of industrial parks in Gujarat.
Further she revealed that the Maharashtra Industrial Development Corporation had signed an MOU with China's Beiqi Foton Motors Co. Ltd. to set up an industrial park in Maharashtra. The minister revealed that there is no restriction for the setting up of private industrial parks in the country, and added that the government has launched several initiatives to develop industrial infrastructure and generate employment opportunities in the country.
She said that efforts were also on to promote the gems and jewellery sector through a number of steps, including providing financial assistance for participation in international fairs and organizing buyer-seller meets etc. under the Market Development Assistance (MDA) and Market Access Initiative (MAI) Schemes of the Department of Commerce.
Several measures, she said, have also been incorporated in the Foreign Trade Policy (FTP) 2009-14 to promote the export of gems and jewellery such as permission to import diamonds on consignment basis for certification/grading and re-export by specified agencies, increasing the limit of personal carriage of gems and jewellery products in case of participation in overseas exhibitions and in case of export promotion tours etc.
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