Based on the announcement made by Finance Minister Arun Jaitley in his Budget FY17 speech, the government is expected to propose 100 percent Foreign Direct Investments (FDI) in 25 more segments of Non-Banking Financial Company (NBFCs) including commodity broking and infrastructure debt fund, with an view to attract more foreign inflows.
The other segments of NBFCs and NBFIs (non-banking financial institutions) include insurance intermediaries, pension Management Company, asset finance company and depository participants. The move will help in promoting ease of doing business and attracting overseas investments by doing away the need of seeking government approvals.
Jaitley in its Budget speech had said that FDI will be allowed beyond the 18 specified NBFC activities in the automatic route in other activities which are regulated by financial sector regulators. At present, 100 percent FDI through automatic route is permitted in 18 NBFC activities including merchant banking, under writing, portfolio management services, financial consultancy and stock broking.
India had received $29.44 billion foreign direct investment (FDI), surging by 40 percent during April-December in the current fiscal. The FDI inflows were at $21.04 billion in the same period of previous fiscal.