The Government of India is expected to relax FDI norms in certain sectors like single brand retail soon to create a business friendly environment in India and thereby promote businesses in India. This move is part of the annual budget announced by honorable finance minister, Arun Jaitley, on February 1st, 2017. The Government of India had already relaxed FDI norms in more than a dozen sectors last year (2016). They include: defense, civil aviation, construction and development, private security agencies, real estate and news broadcasting. Read more on Investments
The Union Minister, Harsimrat Kaur Badal, has also stated that the Government of India is also considering the proposal made by foreign retailers to relax FDI norms in the home care products sector. The government is also considering a proposal to increase the FDI limit in the media sector from the current level of 26% to 49%. Last but not the least; the Government of India is considering allowing 100% FDI in single brand retail sector through the automatic route to attract more global investments in this sector. Foreign Direct Investments in India increased by 22% to US $35.85 billion during April to December 2016.
Foreign Direct Investments are essential to improve the Indian economy in every sector. Therefore relaxation of FDI norms is necessary in every sector to promote FDIs. This is a welcome move taken by the Government of India to boost the Indian economy. This move to relax Foreign Direct Investment norms in almost every sector will pay rich dividends. Read more on Startup News