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ARTICLE · 10 JUNE 2016

Key Changes In The Consolidated FDI Policy Of 2016

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The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India recently released the new consolidated foreign direct investment (FDI) policy.

IndiaGovernment, Public Sector
Rajat Mukherjee
Rajat Mukherjee
Nitish Goel
Nitish Goel
Akshat Gupta
Akshat Gupta
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Introduction

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India recently released the new consolidated foreign direct investment (FDI) policy (New FDI Policy). The New FDI Policy has been made effective immediately from the date of its publication, i.e., 7 June 2016. The New FDI Policy supersedes the consolidated FDI policy of 2015 (Erstwhile FDI Policy) issued by the DIPP on 12 May 2015 and consolidates press notes issued by the DIPP up to 6 June 2016.

The annual exercise of releasing the consolidated FDI policy is primarily intended towards (i) consolidating various press releases / press notes issued by the DIPP and amendments to regulations as notified by the Reserve Bank of India (RBI) in the intervening period between 2 consolidated FDI policies; and (ii) providing clarifications to align the latest FDI policy with existing laws and regulations.

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