(a) whether the Government plan to allow more FDI in financial and other
sectors ;
(b) if so, the action plan drawn up for the purpose, sector-wise ;
(c) the benefits likely to be accrue therefrom; and :
(d) the manner in which it will help in checking the inflation rate and rising
prices of essential items ?
Minister of State in the Ministry of Finance (S. S. Palanimanickam)
(a),(b), (c) and (d) In terms of FDI Policy, FDI is permitted in the following
financial services :
(i) In 19 NBFC activities, FDI upto 100% is permitted subject to minimum
capitalisation norms.
(ii) In Banking sector, subject to caps.
(iii)In Asset Reconstruction Companies, subject to caps. Separately, in
Insurance sector FDI is permitted subject to caps.Review of FDI Policy
is an ongoing process.In general, FDI inflows augment domestic investible
resources.