New Delhi: Government after BJP’s defeat in Bihar assembly elections announced foreign direct investment (FDI) measures which will be levied in 15 sectors on Tuesday.
Raising FDI norms in 15 major sectors, government raises FIPB approval limit to Rs 5,000 crore from Rs 3,000 crore.
FDI policy has been eased in construction, real estate, defence, broadcasting and LLPs sectors.
In order to relax FDI policy in single-brand retail, government allows companies to sell products through e-commerce.
100% FDI is allowed in plantation of rubber, coffee, cardamom, palm oil tree and olive oil tree.
Government has allowed foreign investment up to 49% under automatic route in regional air services sector.
Reportedly, this is supposed to be the biggest reform in the FDI rule which is supposedly going to be announced a day before PM Modi leaves for United Kingdom.
The announcement was made by Amitabh Kant, secretary of Department of Industrial Policy and Promotion (DIPP) on Tuesday evening.
He said, “This is Diwali gift for investors. This is the biggest bang reform of the government.”
According to media reports, this FDI move will be aimed at government’s focus on the economy.
Last year, Narendra Modi government increased FDI limit to 49% in the insurance sector. The government allows 100% FDI in railways and 49% in the defence sector.
According to Financial Times, India is rated as number one destination for FDI which is ahead of China and United States.