Government approves up to 100% FDI in defence, civil aviation
The government introduced on Monday a number of amendments in the FDI policy and put most sectors under automatic approval route, except a small negative list.
The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi, with objective of providing major impetus to employment and job creation in India.
This is the second major reform after the last radical changes announced in November 2015. 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.
Officials met earlier at the Prime Minister’s Office to discuss FDI changes that appeared timed to regain the initiative after the surprise announcement by central bank chief Raghuram Rajan at the weekend that he would not seek a second term.
Changes introduced in the FDI policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionality’s for foreign investment.
The government introduced on Monday a number of amendments in the FDI policy and put most sectors under automatic approval route, except a small negative list.
The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi, with objective of providing major impetus to employment and job creation in India.
This is the second major reform after the last radical changes announced in November 2015. 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.
Officials met earlier at the Prime Minister’s Office to discuss FDI changes that appeared timed to regain the initiative after the surprise announcement by central bank chief Raghuram Rajan at the weekend that he would not seek a second term.
Changes introduced in the FDI policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionality’s for foreign investment.
These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors.
Highlights of changes in FDI
# Up to 100% foreign direct investment in defence sector
# Up to 74% FDI in brownfield pharmaceuticals under automatic route
# 100% FDI in brownfield airport projects under automatic route
# 100% FDI in civil aviation
# FDI up to 49% in civil aviation under automatic route, beyond 49% through government approval
# Local sourcing norms for FDI in single brand retail for products having “state of art” and “cutting edge” technologies
# 100% FDI under automatic route for cable networks, DTH
# Up to 74% FDI in brownfield pharmaceuticals under automatic route
# 100% FDI in brownfield airport projects under automatic route
# 100% FDI in civil aviation
# FDI up to 49% in civil aviation under automatic route, beyond 49% through government approval
# Local sourcing norms for FDI in single brand retail for products having “state of art” and “cutting edge” technologies
# 100% FDI under automatic route for cable networks, DTH
KLB & Associates
Practising Company Secretary
Hyderabad
Hyderabad
