New Delhi: The government today announced a slew of reforms and policy changes in the Foreign Direct Investment (FDI) for 15 major sectors including defence and aviation. The decisions were taken just ahead of Prime Minister Modi's visit to United Kingdom and Turkey.
The highlights of the changes includes easing rules for FDI in sectors including agriculture and plantations, construction, single-brand and wholesale retail, private banks, aviation and broadcasting.
Now, 100% FDI is allowed in sectors of coffee, rubber, cardamom, palm oil, olive oil plantations. Government also decided to introduce complete fungibility of FDI in banking-private sector. The government has decided to increase FDI limit to 49% in the Defence Sector.
100% FDI now permitted under automatic route in duty free shops located and operated in the customs bonded areas.
Rules have also been eased for mining and mineral separation of titanium, defence and limited liability partnerships, an official statement said, adding that sectoral limits have also been increased. The proposed FDI reforms enhance the limit of Foreign Investment Promotion Board (FIPB) from current Rupees 3000 crores to 5000 crores.
Government has also decided to relax its FDI policy in single-brand retail, allowing companies to sell products through e-commerce websites.
The major highlights include Limited Liability Partnerships, downstream investment and approval conditions.
It also took decision on investment by companies owned and controlled by NRIs, establishment and transfer of ownership & control of Indian companies.
“The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments into the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors are wasted,” the government said in a statement.
“The government's decision on liberalising FDI policy is a welcome step and is part of improving ease of doing business. These decisions come into force with immediate effect,” Economic Affairs Secretary Shaktikanta Das said.
DIPP Secretary Amitabh Kant said: “This is Diwali gift for investors. This is the biggest bang reform of the government.”
