New Delhi: Government on Tuesday relaxed foreign direct investment (FDI) reforms levied on 15 sectors. FDI policy has been eased in construction, real estate, defence, broadcasting and LLPs sectors.
Prime Minister Narendra Modi tweeted that the FDI reforms are another example of emphasis on minimum government and maximum governance.
He added that this will ease, rationalise and simplify processes.
PM Modi also tweeted that the FDI related reforms will touch 15 sectors which will benefit youth.
“Government’s commitment to development and reforms is unequivocal and unwavering,” he added.
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In order to relax FDI policy in single-brand retail, government will now allow 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.
Laying emphasis on government’s Make in India initiative, PM Modi also said that India is unstoppable on the path of economic progress and the government wants the world to see the tremendous opportunities the country offers.
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.”
Also Read: Easing FDI policy an exercise to promote ease of doing business: Shaktikanta Das
Shaktikanta Das, Secretary, Economic Affairs said that these decisions will come into force with immediate effect.
“Decision to relax FDI policy is a welcome step to promote ease of doing business,” he added.
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.