The government has approved eight Foreign Direct Investment (FDI) proposals worth Rs 696 crore. Among the cleared proposals, ACME Solar Energy is the major one and is expected to bring in foreign investment worth Rs 275 crore, followed by GETIT Infoservices and France's GeoPost S.A.'s with investment wroth Rs 216 crore and Rs 179 crore.
The Foreign Investment Promotion Board (FIPB) has also cleared the proposal of McKinsey & Company Inc to set up a limited liability partnership (LLP) for providing management consultancy services, entailing foreign investment of Rs 99 lakh. The other proposals cleared by the board include courier company - DPD Continental, Pilot Ventures Media and US-based AWS True power. On the other hand, the proposal of Bangalore-based Tata Advanced Materials Ltd, engaged in the manufacturing of defence related products, was not found to be within the purview of FIPB.
India has allowed FDI in most of the sectors through automatic route, but for certain sensitive sectors, FIPB clearance is required. Foreign investment is considered crucial for economic development of a country. However, in FY13 the FDI inflows for the fiscal 2012-13 recorded a decline of 38% to $22.42 billion compared to the $35.12 billion inflow in the previous year. The government has been liberalizing the foreign investment policy to attract maximum FDI into the country. Recently, the finance minister had visited several major financial markets like Canada, Hong Kong, Germany, Singapore, Canada, and the UK to attract foreign investors.
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