On 3rd and 4th October 2017, Department of Industrial Policy and Promotion (DIPP), under Union Commerce Ministry approved several foreign direct investment (FDI) proposals.
Approval of FDI proposals related to Coastal Local Area Bank, KPB Holdings and Wockhardt Ltd.
Among FDI proposals that have been recently approved, one of them is of KPB Holdings’, a financial services company. Its proposal to issue shares to NRIs (non-resident Indians) has been approved by the DIPP.
- Similarly, Coastal Local Area Bank has also got nod for issuance of shares to NRIs.
- Pharmaceutical and biotechnology company, Wockhardt Ltd. got approval for issuance of ESOPs (employee stock option plan) to NRIs
Government approves 5 FDI proposals in single brand retail sector
On October 3, 2017, Department of Industrial Policy and Promotion (DIPP) approved five foreign direct investment proposals in the single-brand retail sector. These proposals include those of luxury brand Louis Vuitton, Oppo Mobiles, Chumbak Design, Daniel Wellington and Actoserba Active Wholesale.
- Actoserba Active Wholesale proposal was for retailing products under its brand Zivame, whereas Louis Vuitton’s proposal is for addition of products.
- Oppo Mobiles India has got the nod to undertake single brand retail trading (SBRT) of OPPO brand, in addition to existing business of wholesale.
- Information about expected value of investment from Actoserba Active Wholesale and Louis Vuitton has not been clear so far. Chumbak Design is expected to bring FDI inflows of $8.62 million and Daniel Wellington will bring in $10 million.
- Including the above five proposals, DIPP has now approved 17 single-brand retail proposals worth nearly Rs 4,900 crore.
Role of DIPP and FDI in India:
Above mentioned FDI proposals were approved by DIPP, which is now the nodal department for foreign investments in India since the abolition of foreign investment promotion board (FIPB). Abolition of FIPB was announced in Union Budget 2017-18.
- During 2016-17, India received $43.47 billion FDI inflows, which marks 9% growth as compared to previous year.