Informist, Thursday, Jul 4, 2024

NEW DELHI – The government has been holding inter-ministerial internal discussions to ease the policy on foreign direct investment in some sectors, Department for Promotion of Industry and Internal Trade Secretary Rajesh Kumar Singh said today. "As the talks are still internal, I cannot divulge too many details, but we are discussing," Singh said.

In May, Singh had that after a new government came to power, it would focus on liberalisation of the FDI policy in some sectors. This was right after the government had relaxed FDI norms for the space sector.

India recorded gross FDI inflow of $70.95 bln in the year ended March, lower than $71.36 bln in 2022-23.

Today, Singh also pointed to the need to correct the inverted duty structure in all sectors, including electronics. This comes after the electronics industry recommended that the finance ministry rationalise the duty structure in the Budget, likely to be presented later this month.

In an inverted tax structure, the duty on finished goods is lower than the duty on the raw materials used to produce those goods. This hampers domestic value addition and is disadvantageous for manufacturers as they cannot price the finished product competitively. End

US$1 = 83.49 rupees

Reported by Krity Ambey

Edited by Avishek Dutta

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