After a bruising defeat in Bihar assembly election, the Narendra Modi government indicated today that it would allow FDI through automatic route in 15 sectors, including defense, broadcasting, civil aviation, construction and single brand retail.
The government said that it is working towards simplifying the FDI policy. “The crux of these reforms is to further ease, rationalize and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of government route where time and energy of the investors is wasted,” an official statement said.
The proposals contain long pending, including those being felt by the limited liability partnerships as well as NRI-owned companies who seem motivated to invest in India. Few other proposals seek to enhance the sectoral caps so that foreign investors don’t have to face fragmented ownership issues and get motivated to deploy their resources and technology with full force.
DIPP has been advised to consolidate all FDI-related instructions contained in various notifications & press notes and prepare a booklet so that the investors don’t have to refer to several documents of different timeframes.
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