Radical changes in FDI policy regime
Opening economy further, the government recently relaxed FDI norms in a host of sectors including civil aviation, single-brand retail, defence and pharma by permitting more investments under automatic route. Other sectors in which FDI norms have been relaxed include e-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry. 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 PM Narendra Modi. This is the second major reform in the FDI space. The Centre in last November had significantly relaxed the foreign investment regime. The new policy changes hope to increase the ease of doing business in the country, which in turn is expected to push up FDI inflows. India saw $55.46 billion of FDI in the financial year ended March 2016, up from $36.04 billion two years before that.