In order to provide major impetus to employment and job creation in India, the government on Monday liberalized its foreign direct investment strategy, bring most of the sector under automatic approval route. The decision, which is second in series after radical liberalization in FDI in November 2015, was taken at a high-level meeting chaired by Prime Minister Narendra Modi today.
"Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI," an official statement from PMO said.
Key changes include allowing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India and permitting up to 100 per cent FDI in defence sector. The other sectors that have benefitted include the broadcasting, pharmaceuticals, civil aviation, single brand retail among others.
In last two years, BJP-led NDA Government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, among others.
As a result. FDI inflows into the country has increased at $ 55.46 billion in 2015-16 as against $36.04 billion during 2013-14. This is the highest ever FDI inflow for a particular financial year.
20/06/16 Yogima Seth Sharma/Economic Times
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"Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI," an official statement from PMO said.
Key changes include allowing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India and permitting up to 100 per cent FDI in defence sector. The other sectors that have benefitted include the broadcasting, pharmaceuticals, civil aviation, single brand retail among others.
In last two years, BJP-led NDA Government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, among others.
As a result. FDI inflows into the country has increased at $ 55.46 billion in 2015-16 as against $36.04 billion during 2013-14. This is the highest ever FDI inflow for a particular financial year.
20/06/16 Yogima Seth Sharma/Economic Times
