Foreign Investment Promotion Board (FIPB) in its 232nd meeting chaired by Economic Affairs Secretary Shaktikanta Das has given approval for 16 Foreign Direct Investment (FDI) proposals out of the 34 on agenda amounting Rs 14,000 crore. The proposals include that of Japan's Nippon which sought approval for hiking another 23 per cent stake in Reliance Life Insurance to 49 per cent.
Besides, other proposals approved were of Yes Bank to hike foreign investment limit to 74 per cent, from present 41 per cent, making it the first bank to get approval for hiking FDI limit after the new regulations were announced in November. In November 2015, the government had removed sub-limit restrictions for foreign investments in private sector banks within the overall sectoral limit of 74 per cent.
Furthermore, FIPB cleared Sun Life Financial Investments Inc's proposal to hike stake in Birla Sunlife Insurance Company to 49 per cent, Aviva Life Insurance and Raheja QBE General Insurance Company’s proposal to hike foreign investment limit in their respective companies to 49 percent. FIPB also cleared the proposal of Tata AIA Life Insurance Company, Tata Sikorsky Aerospace and International Asset Reconstruction Co.
In order to boost FDI in the country, the government has earlier relaxed FDI norms in as many as 15 sectors, including defence, single brand retail, construction development, civil aviation and LLPs. According to data of Department of Industrial Policy and Promotion (DIPP), India has received $29.44 billion foreign direct investment (FDI), surging by 40 percent during April-December in the current fiscal.