Right after RBI governor Raghuram Rajan's decision not to seek second term, many across the world wondered how Indian Government tackle the negative affect on the markets in the wake of Rexit and Brexit impact across the world.
However PM Modi led NDA government caused surprise by opening up FDI floodgates and sending signals that it follows the policy 'offence is the best form of defence' to tackle any problem. Government opened 100% FDI in Defence,Civl Aviation,Retail sectors and 74% FDI in Pharmaceuticals.
PM Modi tweeted “makes India the most open economy in the world for FDI.” and added “Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India,”
Earlier Modi government surprised all by making major changes in FDI policies in 15 sectors, including defence, mining and banking after the shock in Bihar elections. Government opened 100% FDI in completed construction projects, non-news channels, teleports, cable networks and certain plantation industries.