The government will issue detailed guidelines on the changed Foreign Direct Investment policy on 16 February, commerce and industry minister Kamal Nath said on Friday. On 11 February, the government had changed FDI policy excluding indirect investment through domestic company from overall sectoral ceilings.
While providing an overview of the new FDI guidelines, Nath said that the revised gudelines will redefine the concept of ownership and control. In I&B, defence, control & ownership should be with resident Indian.
All foreign investments, past and present will need to come under the new guidelines.
The Cabinet Committee on Economic Affairs had approved the changes in the guidelines for calculation of the total foreign investment, direct and indirect in the Indian companies.
Left parties have expressed apprehensions that excluding indirect foreign investment in sectors with caps could lead to FDI crossing the ceilings.
On the issue of stimulus packages, Nath remarked, "There cannot be any solution here for the problems in Europe and the US."
However, Nath on Thursday said the changes in FDI policy would not allow the back-door entry for foreign investment into retail sector and circumvention of the sectoral caps.
India does not allow FDI in multi-brand retail, but permits up to 51% in single brand retail and 100% in cash-and-carry wholesale trading. Nath added that the exports will grow by 12-15% this fiscal.