Nod for 100% FDI in aviation, pharma, retail

Other sectors in which FDI norms have been relaxed include e-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry. 

“Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI,” said an official statement. The decision to further liberalise FDI regime with the objective of “providing major impetus to employment and job creation in India” was taken at a meeting chaired by Prime Minister Narendra Modi on Monday. 

Addressing the media later, Commerce and Industry Minister Nirmala Sitharaman clarified that government has allowed 100 per cent Foreign Direct Investment (FDI) to bring in more investment and create jobs and employment, and had nothing to do with helping foreign airlines. There is no conflict between the Civil Aviation Policy announced recently and the approval of 100 per cent FDI in civil aviation, she added. “In fact, this will help a lot in civil aviation policy as the policy is aimed at achieving various goals. Huge investments are required in this sector,” she added. 

She further felt, “Hundred per cent FDI in defence does not mean that we are compromising with the security or defence. Everything will be taken care of while permitting the FDI.  Details will be checked when we get the proposal. But from now onwards, the investor will get the things done at one place. He will not have to go at various places and levels for getting the approvals.”  

Referring to the FDI in food product manufacturing, the minister said “it will help our farmers and economy as it will bring latest technology for food product manufacturing. On many occasions, it has been seen that our farmers get bumper perishable products and in absence of facilities, they perish. This will not happen in case investors bring in investment with latest tech in the related fields,” she added.