India to set up Relationship Managers for top investors |
The government of India has announced that soon, those looking to invest $500 million or more in the country will have a designated person who will facilitate all clearances from the Centre to local bodies with officials from state government and central ministries too converging on one place to address investor queries and enhance flows. The department for promotion of industry and internal trade and Invest India have joined hands to put in place a new mechanism aimed at attracting investors, many of whom have in the past complained of a plethora of clearances holding up their plans. The government of India has also begun a fresh review for further liberalisation of sectoral caps as well as segments that are not on the automatic list, as it courts more overseas investors to revive the investment cycle. Over the years the government has eased the rules considerably, with only a handful of sectors left where prior government approval is required. The list includes defence and telecom, where up to 100% FDI is allowed, but overseas investment beyond 49% requires prior government approval. While more and more automatic route investments are permitted, allowing investors to merely inform the RBI after the investment is made, the government is considering increasing the scrutiny to know where such money flows.
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