5th edition of consolidated FDI policy to come out on March 31

NEW DELHI: The Department of Industrial Policy and Promotion today said the fifth edition of its consolidated FDI policy document will be released on March 31 to incorporate changes made in the regulations over the past six months.

"The next edition of the consolidated FDI policy circular -- Circular 1 of 2012 -- is scheduled to be issued on March 31, 2012, and will be effective from April 1, 2012," the Department of Industrial Policy and Promotion (DIPP) said.

The DIPP is the nodal agency on FDI policy. With a view to make India's FDI regime simple and easy to understand for investors, the DIPP -- which is under the Commerce and Industry Ministry -- had compiled all the related policies into a single document.

Earlier, one had to go through various press notes issued by the industry department and RBI regulations to understand the FDI policy. The government updates the policy every six months.

The DIPP has invited public comments on the document till February 15, 2012.

Foreign direct investment is considered crucial for economic development of a country and India has taken several steps to attract such funds.

In November last year, the government had announced its intent to allow 51 per cent FDI in multi-brand retail, while completely opening up single-brand retail to overseas investors.

It has since notified foreign investment in single-brand retail, but had to suspend FDI in multi-brand retail owing to pressure from its allies and the Opposition in Parliament.

Foreign direct investment in India surged by 36 per cent to $23.68 billion during the January-October, 2011, period despite the uncertain global economic environment.