Industry Bodies and Law Firms Seek Raising FDI limits; Easier Investments from China

To make Indian economy more appealing, industry bodies and legal firms have proposed easing restrictions on the flow of capital from China, liberalising laws for plantations and agriculture, and raising the FDI limits for R&D and security agencies.

The issues were discussed during a consultation by the Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday. Issues related to e-commerce, pharma and financial services were also discussed in the meeting.

The Times of India reported, that DPIIT also solicited ideas from law firms and industry stakeholders on whether any procedural simplifications were required to scale up FDI flows into the country.

The law firms, who serve customers from all over the world, pointed out that FDI from China is subject to scrutiny and is no longer under the automatic path. During the discussions, several industry participants requested defined procedures and timetables for processing these applications, even though several players have been advocating for relaxing the inspections.