Centre to declare new FDI policy

The government will announce changes in foreign direct investment policy by the end of this month, focusing on sectors that generate maximum jobs, Union commerce and industry minister Kamal Nath said. "We are in the process of consultation between ministries, and I think in the course of this month the policy will be announced," he said. Mr Nath had earlier said that government is looking at how foreign direct investment can be used in generating employment. This would be the driving force of all policies, he had said.
Regarding government policy on growth of big domestic companies in retail, Mr Nath had said this issue need to be considered by ministry of consumer affairs. Sources said the commerce ministry is awaiting a report from economic think-tank ICRIER on the implications of foreign direct investment on small and retail traders.
The country received $11.4 billion foreign direct investment in January-June 2007, a 218 per cent jump over the same period last year. For the first quarter of the financial year 2007-08, the inflows were $4.9 billion against $1.7 billion, showing an increase of 185 per cent. In another development, dismissing reports of a delay in the announcement of duty-free and quota-free package to least developed countries, Mr Nath said the matter will soon be taken up by the Cabinet for clearance.
"There is no delay. There is a consultation process going on in the ministry. It will go next week to the Cabinet," Mr Nath said, adding that it could not be taken up by the Cabinet last week as he was not in the city. Arguing that the proposed package was "absolutely independent of World Trade Organisation talks," he said India had very old ties with the African countries, which would be major beneficiaries of the package.
At the World Trade Organisation, he said, India was waiting for the United States proposals on agriculture for progress in the ongoing talks at Geneva. Under the proposed package for least developed countries, the government is likely to allow duty-free and quota-free import of a host of products from countries in Africa, Asia and Latin America.
The package, which has been in the works for many months and has periodically been reviewed by Prime Minister Manmohan Singh, was listed on the agenda for cabinet meeting last week but was later deferred. The package in its original form entailed zero duty import of a host of industrial products and lower duty import of farm goods.