Major Policy Change: Government Introduces 100% FDI In Almost All Sectors

The Logical Indian

June 20th, 2016

News Source: The Hindu, Image Source: newindianexpress

The Central government of India to give a major impetus to the country’s economy, radically liberalised the Foreign Direct Investment (FDI) regime by approving 100 percent FDI under government approval route for almost every sector, including defence, civil aviation and pharmaceuticals.

The decision was taken today at a meeting presided by Prime Minister Narendra Modi. This is the second biggest reform in FDI after November 2015.

The defence sector that had a cap of 49% of FDI, is now 100% open,  in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to ‘state-of-art’ technology in the country has been done away with. The policy is also applicable to the manufacturing of small arms and ammunitions, which was earlier outside the purview of the policy.

The government has also allowed 100 percent FDI in civil aviation, animal husbandry and trading, including through e-commerce, in respect of food products manufactured or produced in India.

The extant FDI policy on pharmaceutical sector provides for 100 percent FDI under automatic route in greenfield pharma and FDI up to 100 per cent under government approval in brownfield pharma.

To modernise the existing airports and make it high-standardised, 100 percent FDI will be permitted in Greenfield Projects and 74 percent FDI in Brownfield Projects.

The FDI policy on broadcasting carriage services has also been amended to enable 100 percent FDI in teleports, DTH, Cable Networks, mobile TVs, and Headend-in-the-Sky Broadcasting Service.

However, FDI policy still prohibits lottery, gambling, atomic energy, real estate ad Real Estate Investments Trusts (REIT) and railway operations.

For Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology, example Apple, the government has decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years. These means companies like Apple can easily enter the Indian market


Share your thoughts..

Propelled by


This Women’s Day Spread The Message Of Equality

Related Stories

India’s GDP Rises To 7.2% In December Quarter, Surpasses China GDP Of 6.8%


GST Rate On Over 70 Items Expected To Be Cut In Today’s GST Council Meeting

As Govt Allows 100% FDI In Single Brand Retail, What Were BJP’s Views On FDI Before It Came Into Power?

Foreign Direct Investment

Centre Gives Nod To 100% FDI In Single Brand Retail, Opens Economy For Global Players

World's Largest Importer Of Arms

India Remains The World’s Largest Importer Of Arms: Swedish Think Tank

Black Money Revealed By Government

Black Money Worth Rs 65,250 Crore Revealed By Government Through Income Declaration Scheme

Latest on The Logical Indian


Bhagwant Mann Resigns As AAP Punjab Unit Chief After Arvind Kejriwal’s Apology To Majithia For Calling Him Drug Lord


MoS For Home Kiren Rijiju Informs Lok Sabha That Six Privately-Owned Airports In India Owe Rs 797 Cr To CISF


Jharkhand: 11 ‘Gau Rakshaks’ Who Lynched Alimuddin Last Year, Convicted Of Murder & Conspiracy


Bangalore’s Bannerghatta National Park Threatened By Illegal Quarrying; City Officials Silent


Railways Under-Reported Expenses By Rs 5,025 Cr To Make Pension Bill Look Smaller: CAG

Fact Check

Fake News Claims Narendra Modi Is Second Most Corrupt Prime Minister In The World