New Delhi: In Prime Minister Narendra Modi’s regime, India’s major focus has been on increasing the flow of Foreign Direct Investment (FDI) for sustaining growth.
Working in this direction, the NDA government has introduced a slew of reforms and policy changes in the FDI in past two years.
The various initiatives taken by the NDA to expand India's global engagements have resulted in a mammoth FDI of USD 55 billion (Rs 3.69 lakh crore) which marks an increase of 43% from the time when UPA was in power.
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In a move to further attract investment, the government today significantly liberalised the FDI regime. The decision was taken at a high-level Cabinet meeting chaired by the PM.
Here's a snapshot of changes brought in India's foreign equity norms:
Aviation
Earlier: FDI under automatic route for 100 per cent in greenfield and 74 per cent in brownfield airport projects.
Now: FDI of 100 per cent in brownfield airport projects also allowed under automatic route.
Defence
Earlier: FDI of 49 per cent under automatic route and above this through government approval on case-by-case basis when it is likely to result in access to modern and "state-of-the-art" technology.
Now: FDI beyond 49 per cent permitted through government approval route. The condition of access to "state-of-the-art" technology in the country has been done away with. Policy also applicable to small arms and ammunitions.
Single Brand Retail Trading
Earlier: FDI of up to 100 per cent allowed with local sourcing condition of 30 per cent.
Now: Local sourcing norms relaxed up to three years, and general sourcing regime for another five years, for entities trading in products with "state-of-art" and "cutting edge" technologies.
Food Processing
Earlier: FDI of 100 percent under automatic route only for manufacturing and processing.
Now: FDI of 100 per cent under government approval route for trading of food products manufactured or produced in India, including through e-commerce.
Pharmaceuticals
Earlier: 100 per cent FDI under automatic route in greenfield pharma projects and up to 100 per cent under government approval in brownfield projects.
Now: Brownfield projects, too, under automatic route for up to 74 per cent.
Private security
Earlier: 49 per cent FDI under government approval route.
Now: FDI up to 49 per cent under automatic route, and FDI beyond 49 per cent and up to 74 per cent via government approval route.
Animal husbandry
Earlier: FDI of 100 per cent under automatic route under "controlled" conditions.
Now: The "controlled condition" norms done away with.
Broadcasting Carriage Services
Earlier: FDI for direct-to-home, mobile TV, head-end in the sky and cable networks of up to 49 per cent under automatic route and up to 74 per cent under government route.
Now: 100 percent FDI under automatic route.
