Government of India announced complete foreign ownership to ease norms for FDI in India to boost important sectors Defense, Civil Aviation, & Pharmaceuticals.
Online PR News – 24-June-2016 – New Delhi – The Government of India has increased FDI (Foreign Direct Investment) through automatic route. Government is strictly going to fulfill its commitment to reform and openness to make investors assure that ease of doing business in India is having high priority.
Sectors focused in this regime are Defense Production, Food Processing, Civil Aviation, Pharmaceuticals, and Single Brand Retails.
Complete Foreign Ownership is the new way to get more investment from foreign to increase the FDI and essential for India to being globally stable country.
The opposition congress termed it as a “Panic Reaction”.
To access the modern technology in Defense sector FDI permitted through government approval and it may be up to 100 per cent. The ambiguity in term of “State-of-Art”, some foreign investors complained about it.
Government approved 100% FDI in country-based airlines, in which only 49% stack can be owned by foreign carrier. This is a revolutionary step to get more funds to domestic airlines. Whether there is no government permission required for FDI in existing airport projects to boost airport development and modernization.
Trading through e-commerce for food products manufactured and produced in India also permitting 100% FDI through government approval route. This will come in effect with the Budget 2016-2017.
Automatic route for FDI is permitted for existing pharmaceuticals sectors up to 74%. But FDI in brown-field pharmacy needs Government approval if FDI is beyond 74% up to 100%.
Enhancing Job Creation, Boosting domestic employment and attracting the foreign investors is the main goal of this new FDI reform. India now became the most open economy in world for FDI through automatic approval route. This may be called a revolution to attract foreign capital to come in.
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