The Indian government, in a move to entice more foreign direct investment, effectively scrapped a rule requiring foreign companies to seek permission from local joint-venture partners before setting up a separate enterprise in the same sector.
The regulation, known as Press Note 18, has been a symbol of India's often ambivalent attitude toward foreign investment in its economy. In a statement yesterday, Minister of Commerce and Industry Kamal Nath said the rule won't be applied to joint ventures that are formed from now on by foreign and Indian companies.
PS: An excellent step Mr. Prime Minister!! You've proved again that you are far too clever not to realize the need for reforms going forward.
Warning: There maybe a "hartal" or "bandh" anytime in Kerala coz of this!! :-)
The regulation, known as Press Note 18, has been a symbol of India's often ambivalent attitude toward foreign investment in its economy. In a statement yesterday, Minister of Commerce and Industry Kamal Nath said the rule won't be applied to joint ventures that are formed from now on by foreign and Indian companies.
PS: An excellent step Mr. Prime Minister!! You've proved again that you are far too clever not to realize the need for reforms going forward.
Warning: There maybe a "hartal" or "bandh" anytime in Kerala coz of this!! :-)
Don't be so hasty in applauding the move. This could easily become detrimental to us, as the foreign companies can overwhelm Indian companies with their sheer size and start gobbling up the Indian market.
ReplyDeleteYou are partly right Mr. Anonymous!
ReplyDeleteBut I would say the Government is just pursuing its agenda of wealth and job creation!! We are after all living in a global village and can't just say not to FDIs anymore if we want to grow in stature in the international arena.