Daily Updates and News

FDI:

The Government has relaxed the Norms for Foreign Direct Investment in Single Brand Retail, Aviation, Pharma, Defence, animal husbandry and food products. In Single Brand Retail, Local sourcing norms eased for three years and a relaxed sourcing regime introduced for five years.

In Civil Aviation Sector, foreign investment up to 49% is allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval.

In Pharma, the Government has decided to permit upto 74% FDI under automatic route in brownfield projects and beyond 74% though approval route.

In Defence, 100% Foreign Direct Investment (FDI) through the approval route and The Government has done away with “state of the art” technology clause.

FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture is allowed 100% under Automatic Route under controlled conditions.

100% FDI under Government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.     

PPF:

The Central Government has amended Public Provident Fund Scheme, 1968. This Scheme may be called Public Provident Fund (Amendment) Scheme, 2016. It shall come into force on the date of its publication in the Official Gazette. The Government changed the norms for Public Provident Fund deposits, allowing the subscribers of the scheme to prematurely close their accounts and withdrawal the complete amount after five years. However, the withdrawal will be allowed for expenditure towards higher education or medical treatment. Currently, the lock-in-period for complete withdrawal from PPF accounts is 15 years.      

Thanks & Regards,

Meetesh Shiroya