New Delhi: Easing FDI norms in defence sector, the government has removed the phrase “access to state-of-the-art” technology for approval of FDI proposals over 49 per cent. This means foreign companies will no longer need to commit to transfer high-level technology for permission to set up companies in India.
At present, government approval is not required for FDI up to 49 per cent in the defence sector. The new norms have also been made applicable to manufacturing of small arms and ammunition covered under the Arms Act of 1959. Till now, FDI up to 49 per cent was allowed under the automatic route and beyond that under the approval route.
The government hiked FDI in Indian airlines to 100 per cent from the current 49 per cent. Now, FDI up to 49 per cent will be permitted under the automatic route (government approval not required) and FDI beyond that will need government approval. However, the limit for foreign airlines investing in Indian airlines will continue at 49 per cent. The government also decided 100 per cent FDI in existing airports will no longer require approval.
Till now FDI beyond 74 per cent in brownfield projects needed government approval. For new airports, 100 per cent FDI is already allowed without government approval.
The pharmaceuticals sector also got a boost: up to 74 per cent FDI in brownfield pharmaceuticals will now be under the automatic route and investment beyond it will require government approval. Till now, any level of FDI investment in brownfield pharmaceuticals needed government approval.
The government hiked FDI in private security agencies from 49 per cent (with government approval) to 74 per cent. As per the new policy, FDI up to 49 per cent will be allowed without government approval and that beyond 49 per cent and up to 74 per cent will need approval.
The government has removed the requirement of "controlled conditions" for 100 per cent FDI under the automatic route in animal husbandry. It allowed automatic approval of 100 per cent FDI in broadcasting activities such as cable networks, mobile television, teleports, direct-to-home TV, and headend-in-the sky broadcasting services.
