New Delhi: Seeking to allay concerns that reforms may slow down after the Bihar setback, the Narendra Modi government, in one of the biggest reforms in foreign direct investment (FDI) on Tuesday, liberalised FDI in 15 major sectors, including defence, civil aviation, real estate and broadcasting, in a bid to boost investment.
The decision, that comes just after the BJP defeat in the Bihar Assembly elections, is seen as a clear signal to investors and the business community that the economic reforms agenda of the government is still on track.
The Centre increased the financial powers of the Foreign Investment Promotion Board to approve investment proposals worth Rs 5,000 crore from the present limit of Rs 3,000 crore.
“Today’s FDI-related reforms will touch 15 sectors and benefit the youth. The government’s commitment to development and reforms is unequivocal and unwavering,” PM Narendra Modi tweeted.
As per the new policy, FDI upto 49 per cent in defence will now not need any approval. The government hiked FDI in cable networks, DTH, mobile TV, HITS and teleports, non-news channels, plantations, duty-free shops to 100 per cent from the current 74 per cent.
It raised FDI in news and current affairs TV channels, FM Radio to 49 per cent. A foreign investor will now be permitted to exit and repatriate foreign investment before completion of project after the three-year lock-in period.
15 sectors get FDI boost
- Limited Liability Partnerships
- Investment by firms owned, controlled by NRIs
- Agriculture and Animal Husbandry
- Plantation
- Defence
- Broadcasting Sector
- Civil aviation
- Construction development Sector
- Single brand retail and duty-free shops
- Banking
- Manufacturing
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