Government of India
Ministry of Micro,Small & Medium Enterprises
29-November-2012 17:16 IST
Investment by Foreign Companies in SMEs
To promote capital investment by foreign multinational companies in small and medium enterprises the Foreign Direct Investment (FDI) in Micro and small enterprises (MSE’s) has Been raised to 100 percent from 24 per cent. However, FDI in MSME’s is Subject to Sectoral caps and other relevant sector regulations.
Enhanced capital investment by foreign multinational companies will create an Environment of healthy competition among MSME’s whether financed by foreign .Investment or otherwise, resulting in availability of better products for consumers. This information was given by the Minister of State (Independent Charge) for MSME’s written reply to a question in Lok Sabha.