With an objective of creating more employment and job opportunities, Government of India made some changes to the FDI policy at a meeting chaired by Prime Minister Narendra Modi. As per a release by the Government, this is the second major reform after the last radical changes announced in November 2015.
Most of the sectors would be under automatic approval route, except a small negative list. As per the latest release by Government, FDI policy are meant to liberalize and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment. So let's take a look at the changes,
- FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.
- FDI policy on pharmaceutical sector provides for 100 per cent FDI under automatic route in greenfield pharma and FDI up to 100 per cent under government approval
- For NRIs, 100 per cent FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest.
