Panel of secretaries working on simplification of FDI rules: Commerce and Industry Minister Mr. Piyush Goyal

The government is working on simplifying foreign direct investment (FDI) rules to expedite the approval process. Commerce and Industry Minister Mr. Piyush Goyal highlighted that the committee of secretaries is exploring ways to streamline procedures, potentially introducing an automatic approval mode for certain items. This initiative aims to enhance efficiency before proposals are presented to the finance minister and Prime Minister for Cabinet approval. Considering rising gold and silver imports, the government has reduced the basic customs duty on gold from 15% to 6%. This move is designed to curb smuggling and support the economy, especially with the upcoming wedding season. He emphasized that formal gold imports contribute to wealth creation and stimulate employment and business growth, particularly in gold jewellery and e-commerce exports.

Regarding removing angel tax, he noted that it addresses 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 mentions the establishment of industrial parks and e-commerce export hubs across the country. While some may focus on specific states like Bihar and Andhra Pradesh, there are plans for 12 parks nationwide. 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 considered alternative methods to promote manufacturing. Customs duty rationalization is anticipated in the coming months, with various ministries expected to propose initiatives to support industries such as pharmaceuticals and chemicals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.