An inter-ministerial panel on Monday approved 11 proposals entailing foreign direct investment (FDI) inflow of over Rs 2,300 crore. Among the proposals cleared, Sharekhan Ltd would attract foreign investment of Rs 2,060 crore, Finance Ministry sources said.
The Sharekhan proposal was for selling 100 per cent stake to BNP Paribas, they said. Besides, Foreign Investment Promotion Board (FIPB), headed by Economic Affairs Secretary Shaktikanta Das, cleared the proposal of Perrigo India worth Rs 253 crore. Other proposals approved included Pepe Jeans and IBM. Of the 11 proposals cleared on Monday there would be expected FDI inflow of Rs 2,325 crore, sources said.
Out of the 18 foreign investment proposals considered, three including that of Idea Cellular Infrastructure Services and Flag Telecom were deferred for want of more information. The 240th meeting of FIPB rejected 4 proposals. The proposal of Morgan Stanley Rs 95 crore was approved through automatic route.
India allows FDI in most sectors through the automatic route, but in certain segments considered sensitive for the economy and security, the proposals have to be first cleared by the FIPB.
The government has taken slew of measures in the recent past to boost foreign direct investment into the country. On June 20, the government had "radically liberalised" the FDI regime with the objective of providing major impetus to employment generation in India.
This was the second big reform after some major changes announced in November 2015.
The government has said measures undertaken by it has resulted in increased FDI inflows at $55.46 billion in 2015-16, as against $36.04 billion in 2013-14.