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FDI policy liberalized in key sectors

  May 13, 2018

FDI policy liberalized in key sectors

FDI policy liberalized in key sectors
Cabinet has approved amendments in FDI policy. The amendments in the policy are as follows:
  1. 100% FDI under automatic route for Single Brand Retail Trading
  2. 100% FDI under automatic route in Construction Development
  3. Foreign airlines allowed to invest up to 49% under approval route in Air India
  4. FIIs/FPIs allowed to invest in Power Exchanges through primary market
  5. Definition of ‘medical devices’ amended in the FDI Policy
These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country.  In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment.

Foreign Direct Investment (FDI) is a major driver of economic growth and a source of non-debt finance for the economic development of the country. Government has put in place an investor friendly policy on FDI, under which FDI up to 100%, is permitted on the automatic route in most sectors/ activities. In the recent past, the Government has brought FDI policy reforms in a number of sectors viz. Defence, Construction Development, Insurance, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting, Civil Aviation, Pharmaceuticals, Trading etc.