Prime Minister Narendra Modi said on Tuesday the decision to ease FDI norms in 15 sectors demonstrates the government’s “unequivocal and unwavering” commitment to development and reforms.
He said the country is “unstoppable” on the path of economic progress and the government wanted the world to see the tremendous opportunities India offers.
“Today’s FDI related reforms will touch 15 sectors & benefit youth. Govt’s commitment to development & reforms is unequivocal & unwavering,” Modi tweeted soon after the government made the announcement.
“Today’s reforms are another example of emphasis on Minimum Government, Maximum Governance. They will ease, rationalise & simplify processes,” he said in another tweet.
“India is unstoppable on the path of economic progress. Govt. wants the world to see the tremendous opportunities India offers,” the Prime Minister said about the decision which was taken just ahead of his visit to the UK and Turkey. In Turkey, he will attend the G-20 Summit.
He added that the “Govt’s commitment - fruits of development must touch every part of India & every citizen of India.”
Pushing ahead with major reforms, the government relaxed foreign investment rules in 15 sectors such as civil aviation, banking, defence, retail and news broadcasting and eased the process for approval of FDI.
While 100% foreign direct investment (FDI) has been allowed in DTH, cable network and plantation crop, overseas investment limit in uplinking of news and current affairs TV channels has been raised to 49% from 26%.
The government relaxed conditions for FDI in single-brand retail and allowed 100% FDI under automatic route in duty-free shops and Limited Liability Partnerships and eased foreign investment norms in the defence sector.
Finance minister Arun Jaitley said the reforms targeted New Delhi’s “top priority emphasis” of making it easier for companies to do business in the country, notorious for its red tape and labyrinthine regulations.
“In the last few months growth in India is being driven by public investment, some private investment and increased foreign direct investment,” Jaitley told a press conference.
“In some areas sectoral caps have been enhanced but more important than that some outdated conditionalities which existed along with the sectoral caps have been either done away with or eased,” he said.