India Inc on Monday said that the
government’s move to relax Foreign Direct Investment (FDI) norms in sectors,
including civil aviation, single-brand retail, defence and pharma, will help
attract big investments and boost job creation.
The Government on Monday relaxed FDI norms
in a host of sectors, including civil aviation, single-brand retail, defence
and pharma, by permitting more investments under the automatic route.
Other sectors in which FDI norms have been
relaxed include e-commerce in food products, broadcasting carriage services,
private security agencies and animal husbandry.
In the defence sector, foreign investment
beyond 49 percent has been permitted through the approval route in cases
resulting in access to modern technology in the country or for other reasons.
The Government has done away with the
clauses pertaining to the ‘state-of-the-art’ technology.
The earlier policy allowed FDI in the
defence sector beyond 49 percent under the approval route on a case-to-case
basis subject to the condition that it would result in access to modern and
state-of-the-art technology in the country.
The decision to further liberalize the FDI
set-up with the objective of “providing major impetus to employment and job
creation in India” was taken at a meeting chaired by Prime Minister Narendra
Modi on Monday.
This is the second major reform overdrive
in the FDI space after significant rules relaxations in November.
The Government also allowed 100 percent
FDI in trading of food products, including through e-commerce, to give a fillip
(boost) to the country’s food processing sector.
No comments:
Post a Comment