Image: Freepick.com
The Indian government is taking steps to simplify foreign direct investment (FDI) regulations to speed up the approval process. Commerce and Industry Minister Piyush Goyal announced that a committee of secretaries is reviewing ways to streamline these procedures, potentially implementing an automatic approval system for certain sectors.
This initiative aims to enhance efficiency before proposals are submitted to the finance minister and Prime Minister for Cabinet approval. In response to rising gold and silver imports, the government has reduced the basic customs duty on gold from 15% to 6%. This measure is intended to curb smuggling and support the economy, particularly with the upcoming wedding season in mind.
Minister Goyal emphasized that formal gold imports contribute to wealth creation and stimulate employment and business growth, especially in the gold jewelry and e-commerce export sectors. Addressing the removal of the angel tax, Goyal noted that it aims to address concerns about startup valuations, which often rely on potential rather than tangible assets. He stressed the importance of recognizing the value of innovative ideas. The Budget also includes plans to establish industrial parks and e-commerce export hubs across the country, with an initial focus on 12 parks. The government will initially launch 10-15 e-commerce hubs and assess industry interest for potential expansion.
Although the Budget did not specifically mention the production-linked incentive (PLI) scheme, Goyal indicated that employment-linked incentives are being considered as alternative methods to promote manufacturing. Customs duty rationalization is expected in the coming months, with various ministries likely to propose initiatives to support industries such as pharmaceuticals and chemicals.
