The Big Bang FDI reforms

The Big Bang FDI reforms

Week : [8-15 November]

The Central government has recently eased Foreign Direct Investment (FDI)  norms across 15 sectors including defence, banking, construction, single brand retail, broadcasting and civil aviation. This is aimed at boosting the investment environment in the country.

The government raised the threshold limit of approval by Foreign Investment Promotion Board from the earlier Rs 3,000 crore to Rs 5,000 crore. As per the earlier policy, FIPB considered foreign investment proposals of inflow up to Rs 3,000 crore and those above that limit were placed for consideration of the Cabinet Committee on Economic Affairs.

 Refining of foreign investment norms in construction is to facilitate the construction of 50 million houses for poor.  Opening up of the manufacturing sector for wholesale, retail and e-commerce is aimed at motivating industries to Make In India.

The central government in the last few months had introduced many FDI policy reforms in sectors such as defence, rail infrastructure, construction development, insurance, pension, medical devices, white label ATM operations, investments by NRIs on non-repatriation basis and has introduced composite cap for foreign investment.