The following are the major recommendations of the committee to increase FDI inflows into India:
(i) Making investment in most sectors automatic, removing it from the discretionary ambit of the foreign Investment Promotion Board even while empowering it and Foreign Investment Implementation Authority to carry out as many clearances as possible such as registration for excise and direct tax payments.
(ii) Enactment of new law on FDI granting national treatment to foreign firms and removing the enforcement directorate as their supervisory body.
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(iii) Permit upto 100% FDI in petroleum refining, oil marketing, mining, petroleum exploration, airports, banking and investment companies, and radio paging and advertising.
(iv) Allow upto 49% investment in insurance and airlines (including FDI by foreign airlines) and upto 74% in telecom sector (both basic and mobile)
(v) Put all proposals except plantation and housing on automatic routs.
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(vi) Cap foreign investment at 49% for plantations and allow 100% FDI in real estate (housing)
(vii) The Special Economic Zones (SEZs) should be developed by simplifying applicable laws and administrative procedures
(viii) A number of exit barriers to FDI investors such as sale of shares by one foreigner to another, sale from non-resident to resident etc, should be removed.
(ix) States should enact a special investment law relating to infrastructure to expedite all investments in the infrastructure sector.