(English) Current Affairs For Bank IBPS Examination – 18 July, 2013
Current Affairs For IBPS, SBI & All Banks Examination
18 July 2013
Doors open, but FDI inflow may be a slow train coming
The intended effects of stemming the rupee’s slide and spurring income growth through the government’s latest reforms initiative to raise foreign direct investment (FDI) caps in a range of sectors and simpler entry norms in others may take some time to kick in.
The fresh policy pronouncements, however, are likely to soothe frayed nerves of investors who fear that the government is more likely to be focussed on political risk management rather than economic revival.
“The initiatives taken yesterday were very important policy initiatives in a broad direction,” Planning Commission deputy chairman Montek Singh Ahluwalia Business leaders welcomed the FDI policy overhaul, but cautioned that more needs to be done. “Recent amendments to policies are somewhat responsible for the slump in FDI inflows. A stable policy regime is essential to attract continuous investment flows,” CII said.