Union Budget 2019: Congress' Milind Deora lauds specific aspect of Nirmala Sitharaman's maiden budget

Congress leader Milind Deora welcomed Finance Minister Nirmala Sitharaman's decision to 'liberalise India's FDI regime' in the Union Budget 2019. In a series of tweets, opining on the various elements of the Budget speech,  Deora stated that to grow there is a need for 'foreign capital with adequate safeguards'

The Congress leader further said that FBI 'enhances India’s forex reserves and offers risk-free capital for Indian entrepreneurs'

His tweet read: I welcome Nirmala Sitharaman ji's announcement to liberalise India’s FDI regime. To grow, we require foreign capital with adequate safeguards. FDI enhances India’s forex reserves & offers risk-free capital for Indian entrepreneurs.

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Sitharaman while presenting the Union Budget 2019 in the Parliament has proposed a plan to make the country a more 'attractive destination' for foreign direct investments (FDI)

Sitharaman increased the FDI limit from 49% to 100% and opened the scope of FDI's in various sectors like aviation, media, and animation. 

She said:

FDI inflows into India have remained robust despite global headwinds. Global Foreign Direct Investment (FDI) flows slid by 13% in 2018, to US$ 1.3 trillion from US$ 1.5 trillion the previous year – the third consecutive annual decline, according to UNCTAD’s World Investment Report 2019. 

India’s FDI inflows in 2018-19 remained strong at US$ 64.375 billion marking a 6% growth over the previous year. I propose to  further consolidate the gains in order to make India a more attractive FDI destination:

1. The Government will examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in
consultation with all stakeholders.

2. 100% Foreign Direct Investment (FDI) will be permitted for insurance intermediaries.

3. Local sourcing norms will be eased for FDI in Single Brand Retail sector.  

Finance Minister Nirmala Sitharaman announced a slew of initiatives and measures to push the growth in the economy, including the intention to invest Rs 100 lakh crore towards infrastructure in the next 5 years, to buttress the transformation of India into a $5 trillion economy.

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