Reforms Push: Modi Govt eases FDI Norms in 15 Major Sectors

Allaying fears of economic slowdown in the country following the poll debacle in Bihar, the Modi Government has eased FDI (Foreign Direct Investment) norms in 15 major sectors, including Mining, Civil Aviation, Broadcasting, Construction, Railways, Agriculture and Animal Husbandry, Plantation, Wholesale Trading, Banking, Manufacturing, etc. According to Finance Minister Arun Jaitley, FDI has witnessed an increase of 40% this year.

The FDI policy in single brand retail was relaxed, allowing companies to sell their products through e-commerce. Regional aviation services have been opened towards foreign investment up to 49% under the automatic route.

FDI in non-news TV channels have been increased to 100% through the automatic route. FDI in News Channels have been increased from 26% to 49% through the government route.

Foreign Investment Promotion Board (FIPB) have been granted power to give single window clearance for investment projects up to Rs 50 billion from Rs 30 billion.

Excerpts from Arun Jaitley’s Speech:

* India has become one of the most important investment destinations.
* 40% increase in FDI in 2015.
* Indirect taxes for Oct significantly improved. Excise collections indicates manufacturing sector is moving up.
* Net impact of reforms undertaken should have pushed India higher on ease of doing business.
* Investors also prefer to invest in destinations where growth is picking up & returns are likely.
* Most important reform has been in the construction sector. Now that the interest rates have come down, we hope it will pick up.
* While FDI norms were relaxed in 15 sectors, it will boost 32 sectors in total.