BackGovt notifies changes in FDI policy
The new policy was announced earlier in the week with a view to make India more investor-friendly and an attractive foreign direct investment destination
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New Delhi: The government on Friday notified changes in the foreign direct investment (FDI) policy in sectors including pharmaceuticals, defence and single-brand retail.
These decisions were announced earlier in the week with a view to make India more investor-friendly and an attractive FDI destination.
“The decision will take immediate effect," the department of industrial policy and promotion said in a press note.
The changes in the policy include allowing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured and/or produced in India.
To attract investment in the defence sector, the government has removed the condition of state-of-art technology, besides permitting foreign investment in manufacturing of small arms and ammunitions.
The government has also permitted 100% FDI through the automatic route in broadcasting carriage services such as teleports, direct-to-home and mobile TV.
In a significant reform move, the government allowed 100% FDI in airlines and relaxed norms for overseas investments in brownfield airports. In private security agencies, the FDI limit was raised to 74% from 49% earlier.
In single-brand retail trading, the government said the mandatory local sourcing norm for foreign firms “will not be applicable up to three years from commencement of the business i.e opening of the first store for entities undertaking single brand retail trading of products have state-of-the-art and cutting edge technology and where local souring is not possible".
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