New FICCI chief eyes $75 bn FDI by 2015

Hindustan Times

New Delhi,

Lower transaction costs in business through simpler regulations, elimination of inspector raj, and a further liberalisation of the insurance and retail sectors are high on the agenda of Rajan Bharti Mittal, the new president of industry chamber FICCI.

“FICCI will like to propose a target of $75 billion (Rs 3,45,000 crore) foreign direct investment by the year 2015 from the current level of $33 billion (Rs 1,51,800 crore). At the same time we have to increase the domestic investments,” said Mittal.

“While attaining a higher level of savings to support such growth is not a problem in today’s context, it is the economy’s absorption capacity which matters. FICCI studies on the state level reforms have identified hurdles in the way of increasing the absorption at the ground,” said Mittal.

“While the policy level reforms at the central government level have progressed, it is the procedural reforms at the state level that now deserve our attention,” he added. 

RBI changes definition of PIO for the purpose of FEMA

TREN, February 27, 2010; Reserve Bank of India has amended the definition of PIO vide its circular number 25, [ref. RBI/2009-10/ 286 A.P. (DIR Series)] dated January 13, 2010 for the purpose of purchase of immovable property in India by the People of Indian Origini (PIOs). 

In this regard, attention of Authorized Dealer Category-I banks has been invited to the existing clause (c) of Regulation 2 of Notification No. FEMA 21/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India), Regulations, 2000, as amended from time to time, in terms of which 'a Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:

(i) at any time, held an Indian Passport or 

(ii) who or either of whose father or whose grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

However, Government of India, notified vide G.S.R.813 (E) in the Gazette of India dated November 12, 2009 [Notification No.FEMA.200/2009-RB dated October 5, 2009] an amendment to clause (c) of Regulation 2 of the Notification referred to above. Accordingly, 'a Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or Sir Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:

(i) at any time, held an Indian Passport or 

(ii) who or either of whose father or mother or whose grandfather or grandmother was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955). 

The circular also requests Authorised Dealer Category-I banks to highlight the amendments among their constituents and customers concerned. Source: GOPIO