Easing of Foreign Direct Investment

Easing of Foreign Direct Investment

Posted on Posted in Economic Reforms

The easing of foreign direct investment (FDI) took pace as the central government is planning to lift the barriers from 15 sectors including construction, single-brand retail ,banking, defence, broadcasting and airlines. Even though there is criticism against liberalisation from political parties, government is taking firm steps to implement it’s decisions regarding FDI.

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Irrational rules must go as India needs inflow of capital that comes with technology and expertise. Construction sector slows down because of the starvation of funds. So construction sector sees extensive liberalisation. Easing of FDI is considered as a ‘Big Bang’ move. The proposed reforms enhance the limit of Foreign Investment Promotion Board (FIPB) from current Rs 3,000 crore to Rs 5,000 crore. India got FDI of $19.39 billion in the April-June period, according to government data, up 29.5% over the year earlier. The Modi government is pushing hard to speed up overseas investment, easing FDI regulations in various sectors including the railways, medical devices, insurance, pension, construction and defence.

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