Budget’s message for FDI

To improve the ease of doing business for Foreign Direct Investment (FDI), the Indian government is abolishing the Foreign Investment Promotion Board (FIPB).

“This will further promote use of e-filing and automatic clearances for FDI applications,” said Radhika Rao, economist at the #Development Bank of Singapore (DBS) in comments on the Budget 2017-18, presented in Parliament on 1 February 2017.

Affordable housing will enjoy higher allocations from the centre and low cost housing segment, treated as infrastructure, will likely to receive favourable loan terms, said Rao.

If the measures are well-executed, Wednesday’s (1 Feb 2017) budget will boost rural and urban consumption, especially amongst low-income earners. This will provide a respite from the short-term dip in activities following the banknote ban, demonetization.

Summing up, Rao said the Budget was wide-ranging in its approach, with micro changes to provide the much-needed boost to growth and investment.

Meanwhile, the abolishment of FIPB, will in all likelihood involve further measures to support sustained inflow of FDI into India, Babita Ambekar, Special Counsel and Head of India and Japan at #Duane Morris & Selvam LLP in Singapore.

The measures to be taken will further support Prime Minister Narendra Modi’s statement in mid-2016 that the FDI reform path “makes India the most open economy in the world for FDI”.

“Certain ancillary issues that foreign companies typically encounter, such as local establishment and employment aspects, will also likely be addressed,” said Ambekar in reaction to the Budget. fii-news.com