New tech has made FDI ceiling obsolete in many sectors: FM

Technology has made sectoral FDI caps irrelevant, Finance Minister Arun Jaitley on Saturday said while asking service providers to exploit the inherent potential to become more competitive globally. The services sector is India’s core strength and the country has the ability to provide services cheaper globally, he said while speaking at the valedictory function of Exhibition on Services (GES).

Technology will play a much bigger role in the coming days, he said, adding the world’s largest retailer does not own even a single store and the biggest transporter does not have a vehicle. In yet another illustration, Jaitley said: “I can read and enjoy global newspapers on net and ipad or smartphone. How can it make a difference whether I take a physical copy and read...I can see foreign challenges...so our sectoral (FDI) limits really do not matter in these areas”.

100 per cent FDI is allowed in several sectors but there are caps in insurance, media, banking among others. Although foreign investment is not allowed in legal services, several lawyers in India provide opinion to overseas lawyers.

“I see hundreds of lawyers in Delhi and Mumbai typing opinions and preparing documents and sending it to their counterparts internationally, but we officially do not allow any foreign collaborations... technology and this battle of ideas has defied all areas where we have been slow to grow,” he said.