It has also said that each phase of the construction development project would be considered as a separate project for the purposes of FDI policy.
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Since taking office in May previous year, the Narendra Modi government has increased FDI limit in the insurance sector to 49 per cent and allowed foreign participation in the defence sector to up to 49 per cent. The government has also allowed up to 100 per cent FDI in railway projects.
In the defence sector, 49 per cent foreign investment has been allowed under the automatic route and anything beyond through the Foreign Investment Promotion Board (FIPB) nod.
The government statement listed the sectors where investment norms have been eased, but did not cite precise steps. It is one more proof of minimum government and maximum governance… “It’s good that government started early on reforms process”.
The Govt has declared 100 per cent FDI allowed in plantation of rubber, coffee, cardamom, palm oil tree and olive oil tree.
Further manufacturers can sell product through their own e-commerce ventures without government approval.
“In case of infusion of fresh foreign investment within the permitted automatic route level, resulting in a change in the ownership pattern or transfer of stake by existing investor to new foreign investor, government approval will be required”.
Government has approved four proposals of Foreign Direct Investment, FDI, amounting to Rs 384.45 crore. Further, FIPB in its meeting which was chaired by Economic Affairs Secretary Shaktikanta Das also cleared proposals of Eucare Pharmaceuticals and Hanon Systems from manufacturing sector. These proposals are subject to more scrutiny. FIPB meets nearly every month and more FDI proposals under it would mean faster clearances.
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To further boost this entire investment environment and to bring in foreign investments in the country, the government has brought in FDI-related reforms and liberalization.
