FDI policy needs to be changed?

Q: hey..i heard many people say that the FDI policy needs to be changed..please discuss!!

Abhijit Thanki, Mumbai

16th June 2014

Real estate News

investment

foreign real estate developers

fdi

foreign direct investment

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Replies (4)

Hi Guys,
I heard from one of my friend that , govt. seek foreign fund for infrastructure investment. Is it true to said that govt. has some new plan/initiative in this budget for infrastructure development? Definitely there will be a huge impact on Indian economy.

Shivshankar, Delhi-NCR

25th February 2015

Comment

Hi Shivshankar,
As per my knowledge, Government is seeking overseas investment for infrastructure projects worth over $75 billion in sectors like power, roads and railways over the next few years. That includes highway projects worth $ 6 billion to be implemented in the next few years. As many as 26 projects worth $ 3.6 billion are in final preparation stages before implementation, 9 are ready to be bid out and 16 are at various stages of the bidding process.

Rajesh, Delhi-NCR

25th February 2015

@ Shivshankar,
In my point of view, the value of roadways and bridge infrastructure in India is expected to grow at a CAGR of 17.4 per cent between 2012-17, to reach $ 10 billion. The PPP model will continue to be the favoured way of executing the remaining NHDP phases. There has been an unprecedented increase in cargo handling capacity from 575 Million Metric Tonnes (MMT) in 2009 to 800 MMT in February 2014.

Raj Roy, Delhi

25th February 2015

According to me, as part of the government's efforts to actively focus on development and upgradation of capacities across all coastal states projects in shipping for the next few years worth $ 9 billion will be implemented. In the power sector four thermal power projects with installed capacity of more than 8,200 MW will be out for bidding in 2015-16.

Geeta, Noida

25th February 2015

About 10 projects in power sector worth over $ 19 billion will be implemented in the next five years, said the DIPP paper, which was part of the booklet circulated among wealthy sovereign funds during the India Investors Summit held on February 3. Government has set a target of producing 100 GW of solar power by 2020 and the country offers unlimited growth potential for the solar photo voltaic industry.

Kalki K,

25th February 2015

Hi,

In my point of view, government has allowed 100 per cent FDI in the railway infrastructure segment which has opened up opportunities for participation in projects such as high-speed railways, railway lines to and from coal mines and ports, electrification and suburban corridors. Indian Railways has begun exploring the PPP mode of delivery and aims to award projects...through the PPP route.

lekshmi.sanjeev@ymail.com, Delhi

26th February 2015

Hi,

As per different sources, railway projects worth over $ 42 billion in the next few years are likely to be implemented. The government also proposes to execute infrastructure projects on PPP (public private partnership) basis across the various infrastructure sectors. Out of 26 road projects eight are on PPP basis. Of the 11 projects in the ports and shipping sector, 90 per cent will be executed on PPP basis. As many as 10 power projects in the next financial year will be build on PPP mode.

Harleen K, Chandigarh

27th February 2015

Hi Guys,
As i came to know from news , majority of projects in railways proposed for FY 2015-16 are on PPP basis. The National Tariff Policy ensures adequate return on investment to companies engaged in power generation, transmission and distribution and to companies producing assured electricity to end users at affordable and competitive rates.

Zoya.A, Greater Noida

28th February 2015

According to recent budget updates, the minimum capital for FDI has been reduced from US $10 million to US $5 million and the minimum area requirement for all other construction projects other than housing has been reduced to 20,000 sq m built-up area from 50,000 sq m built-up area. You can read more about it by clicking on this link: Budget 2014: FDI in Real Estate

Kanthi Sridhar, Bangalore

10th July 2014

Comment

All the share holders have benefited from the move, though at a cost. The immediate action plan
could be to make legislative changes for increasing the cap in insurance from the current 26%. Any such hike could set the dramatic change for more inflows into the Indian insurance and pension sectors.

Karthik, Gurgaon

19th June 2014

Comment

At the same time, there could be a review of policy framework in ecommerce. There may be a

case for allowing FDI in B2C ecommerce, although in a small way to begin with. FDI is permitted in ports, manufacturing of railbased factories, shipping, road construction. However, the actual level of investments has not been significant, without some cases such as ports.

Sooraj, Ghaziabad

19th June 2014

India is the best place for many foreign portfolio investor who have bet big on Indian equities.

It is heard that a complete rerating of India over the last few months with FIIs in nearly $16
billion into Indian debt and equities since January. And there will be no stopping for India if the new Government were to structure the whole FDI policy.

Amarendar, Faridabad

19th June 2014

Comment

It is not just the telecom sector which faced problems but also other sectors such as Posco also
faced the heat, especially in land acquisition. Despite the controversies, allowing more FDI in aviation and pharmaceutical industries has only helped these sectors.

Yash Panth, Ghaziabad

19th June 2014