| 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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