NEW CONSOLIDATED FDI POLICY ANNOUNCED

NEW CONSOLIDATED FDI POLICY ANNOUNCED

Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India has issued a new consolidated FDI Policy framework, that would now constitute a single document on FDI policy and mark the inception of a whole new chapter on FDI in India. The policy will be effective from April 1, 2010.  From now onwards, a consolidated policy document would be issued at the end of every six months, which will substitute the existing policy.

The new policy document will supersede all Prior Policies/ Regulations on FDI which are contained in Foreign Exchange Management Act (FEMA), 1999, RBI Regulations under FEMA, 1999 and Press Notes/ Press Releases/ Clarifications issued by DIPP and reflects the current 'Policy framework' on FDI. All earlier Press Notes/ Press Releases/ Clarifications on FDI issued by DIPP which were in force and effective as on March 31, 2010 stand rescinded as on March 31, 2010.