The Rubber Board supports a proposal allowing 100% foreign direct investment (FDI) in the rubber plantation sector. A Jayathilak, Rubber Board Chairman said that foreign investment is important to make the country self-sufficient in natural rubber.
The Department of Industrial Policy and Promotion proposed 100% foreign investment for coffee and tea plantations through government approval route with portfolio investment up to 49% under automatic route.The Department of Commerce and the DIPP are discussing the proposal to permit 100% FDI both areas.
Currently, 100% FDI is permitted only in the tea sector.
Allowing foreign players in these two plantation sectors is part of the several steps from the commerce and industry ministry to boost foreign investments.
In 2014-15, FDI into the country rose 27% to US$30.93 billion. To pull in foreign investments, the government has raised the FDI cap in the insurance sector and defence. It has relaxed policy in railways, construction and medical devices sectors