Hyderabad:Finance Minister Nirmala Sitharaman on Tuesday proposed to simplify norms on the foreign direct investment (FDI) and overseas investment to promote rupee usage.
During her Budget speech Sitharaman emphasised that the regulations will be eased in order to increase FDI inflow, nudge prioritisation and stress on opportunities for using Indian rupee for overseas investments.
"FDI and overseas rules and regulations will be simplified to facilitate FDI, nudge prioritisation and promote opportunities for using Indian rupee as a currency for overseas investment," she said.
A substantial foreign investment has come to India as FDIs and Foreign Portfolio Investors (FPI). A simplified FDI rules along with green energy and AI technology can bring in more investments into India.
Over the years, the Indian rupee has been going low. Ahead of the Budget presentation, rupee appreciated 6 paise to close at 83.31 against the US dollar on Tuesday as a result of a weak greenback against major currencies overseas and softening crude oil prices.
The government earlier took steps to promote rupee as the preferred currency in global market for promoting export. Earlier, the RBI had asked banks to come up with arrangements for transactions of import and export in Indian rupee in order to promote global trade growth.
In the last one decade, rupee has depreciated by 27.6 percent against the US dollar from Rs 60.34 to Rs 83.38 while during the period of 2004 to 2014, rupee went from 44.37 to 67.34, which was around 26.5 percent.
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