The Union Government has radically liberalized the foreign direct investment (FDI) norms by permitting 100 % FDI under government approval route for almost every sector including defence to give impetus to job creation and ease of doing business in the country. The decision in this regard was taken at a high-level meeting chaired by PM Narendra Modi. With these changes in FDI norms, India has become the most open economy in the world for foreign direct investment.
Some of these sectors are Food products, Defence Sector – Present FDI regime in this sector permits 49% FDI participation in the equity of a company under an automatic route. Now, FDI beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country, Pharmaceutical Sector, Aviation Sector, Animal Husbandry, Single Brand Retail Trading. The Union Government has also mentioned few sectors in the small negative list in which FDI continues to be prohibited in atomic energy, lottery, gambling, real estate and Real Estate Investments Trusts (REIT) and railways operations.
So let’s discuss some questions related to this post :
1. The Union Government has eased FDI norms for some sectors by permitting how much percentage FDI under government approval route?
2. Name the sectors which have been mentioned under negative list for FDI?
Courtesy: The Hindu