Welcome to the latest bulletin of key policy decisions and high-impact news from India, presented by the Embassy of India, in Washington D.C. |
Defense Minister: 'Significant Step' to Raise Foreign Investment in Defense
Defense Minister Arun Jaitley said the decision to raise the foreign direct investment limit in the defense sector to 49 percent is a "significant step" in establishing an indigenous military industry."
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Foreign Investment Cap in Insurance Raised to 49%
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Govt. Not Seeking Retrospective Taxes on Investors
The Finance Ministry has sought to allay the concerns of investors and industry over some of the Budget proposals such as a higher long-term capital gains tax on debt mutual funds and the application of tax-avoidance rules. Revenue Secretary Shaktikanta Das suggested that investors in debt mutual funds might not have to pay taxes retrospectively for units redeemed before this year's Budget was presented.
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Revenue Secretary: Govt. Yet to Take a Call on implementing General Anti-Avoidance Rules.
The Government is yet to take a call on the implementation of the General Anti-Avoidance Rules (GAAR), Revenue Secretary Shaktikanta Das said.
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Guarantees Given for Non-Resident Investments
In order to provide operational flexibility and ease procedures, the Reserve Bank of India has decided to permit Authorized Dealer Category-I banks to issue bank guarantees, without prior approval of the Reserve Bank, on behalf of a non-resident acquiring shares or convertible debentures of an Indian company through open offers, delisting and exit offers, subject to certain conditions.
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India Goes Big on Tech with First-Time $1.6 Billion Start-Up Fund
The Government's first Union budget has come out strongly in support of India's high-growth tech industry. Finance Minister Arun Jaitley announced a $1.6 billion Government fund for tech start-ups to be financed by equity and soft loans. This is the first time such a tech fund has been established by the Indian government.
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U.S. Investors Welcome PM Modi's Maiden Budget
The maiden Budget of the Modi Government has been hailed by American experts and corporate sector here as a step in the right direction to generate employment and foster growth. They said Finance Minister Arun Jaitley has opened the door to a much wider level of US involvement in India's development plans in the coming years.
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Industrial Growth at 19-Month High
Industrial production is at a 19-month high, growing 4.7 percent in May on improved performances across sectors, including manufacturing, mining and power. The Index of Industrial Production for the April-May period grew 4 percent over the comparable period last year.
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Reserve Bank 'Determined' to Bring Down Consumer Inflation
Reserve Bank of India Governor Raghuram Rajan said the central bank is "determined" to make sure consumer inflation eases down along a "glide path." A Reserve Bank panel in January recommended bringing consumer-price index inflation down to around 8 percent by the end of January 2015 and to 6 percent by the end of the following year
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