Welcome to the latest bulletin of key policy decisions and high-impact news from India, presented by the Embassy of India, in Washington D.C.
High-Impact News

Finance Minister: Ours Is Not a High-Tax Govt. 

 
Asserting that the Modi Government is not interested in high taxes., Finance Minister Arun Jaitley said that lower taxes and duties are aimed at improving savings for investment and making manufacturing competitive to revive growth.


 

Foreign Institutional Investors' Stake in India Highest in a Decade

 
Holdings of foreign institutional investors in Indian companies have been inching up steadily, taking their stake to the highest level in at least 10 years. The trend, say analysts, will continue as foreign investors place their bets on an economic revival in Asia's third largest economy under the newly elected Modi Government.

 

Major Ports to Double Capacity in Next 5 Years


Union Shipping Minister Nitin Gadkari said that India's 12 major ports will double their cargo handling capacity to 1600 million tons per year in the next five years.

 
Indian CEOs: Tremendous Positive Mood Swing in Wake of New Modi Govt.
 
There is a tremendous mood swing and positivity in the country following the formation of the new Modi Government, said a delegation of Indian CEOs from the Confederation of Indian Industry during a visit to Washington, DC. The Indian CEOs, in an interaction at the Carnegie Endowment for International Peace, highlighted the growing sense of optimism among both the public and industry in India.

Textile Policy Aims to Create 35 Million More Jobs, $300 Billion in Exports  
 
 An expert panel constituted by the Government has submitted the draft of the new National Textiles Policy, which aims to achieve $300 billion in exports by 2024-25 and create 35 million new jobs by attracting investments. The blueprint envisages an additional investment of $120 billion.
Key Policy Decisions

Cabinet OKs 49% Foreign Direct Investment in Insurance Sector; to Fetch Up to $4.1 Billion  

 

The Cabinet gave the go-ahead to raise the foreign direct investment cap in the insurance sector to 49 percent, paving the way for as much as $4.1 billion in foreign funds in the sector. This Govt. reform raises expectations of further relaxation of foreign investment in sectors such as defense and railways.

Govt. Approves 19 Foreign Investment Plans 

 

PM Modi Sets Targets for Infrastructure Ministries

Prime Minister Modi has met with the secretaries of nine infrastructure ministries to set targets for 2014-15 and identify key projects. Secretaries and senior officials from the power, road transport, shipping, civil aviation, coal, petroleum, railways, telecom and renewable energy ministries attended. 
 
  
Govt. Keen to Set Up Trade Policy Council 
    
In its bid to bring in efficiency and ensure administrative reforms, the Modi Government has identified key focus areas including setting up of a trade policy council and ambitious infrastructure projects to improve connectivity and augment electricity supply in urban and rural areas.  

Finance Secy.: Govt. Developing Flexible Model to Boost Infrastructure

Public-Private Partnership (PPP), the proposed institution of the Union government, will look into issues relating to regulation, finance structure and management of contracts, Finance Secretary Arvind Mayarm said. He added that the framework for PPP has to be set up in a manner to allow flexibility because contracts are spread over 20-25 years.

Reserve Bank Raises Foreign Institutional Investment Sub-Limit in Govt. Bonds by $5 Billion

The Reserve Bank of India has raised the foreign institutional investors' (FII) sub-limit in government bonds by $5 billion. The move is expected to stabilize yields. The overall limit for FII in government bonds remains unchanged at $30 billion.     

Govt. Approves Six New Airlines


Overturning a policy of selectively granting aviation licenses to applicants, the civil aviation ministry has approved six new airlines. The move could result in as many as eight new airlines taking to the skies this fiscal year and is likely to stoke competition, leading to lower fares for consumers and improved connectivity across the country.
 

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