Govt announces sweeping relaxation of FDI norms in 15 sectors

Unveiling sweeping liberalisation of foreign investment norms, the government today opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms days after BJP's debacle in Bihar and ahead of the Prime Minister's UK visit.
While restrictions in the construction sector were freed up by allowing overseas investors to exit and repatriate investment even before project completion, foreign direct investment (FDI) up to 49 per cent stake in defence firms and regional airlines has been allowed without government nod.
Prime Minister Narendra Modi described the easing of FDI norms in 32 investment points as reflection of "unequivocal and unwavering" commitment of the government to development and reforms as they should touch life of every citizen.

He asserted that the country is "unstoppable" on the path of economic progress and the government wanted the world to see the tremendous opportunities India offers.
The raft of reforms, aimed at boosting investor confidence and drumming up FDI for faster growth, comes ahead of Modi's visit to the UK beginning November 12.
Talking to reporters, Finance Minister Arun Jaitley said: "Reform is always an ongoing process, there is no finishing line as far as reforms are concerned".

When asked whether the FDI reforms would also include multi-brand retail, he said that there is no change in the existing policy for the sector.

As part of the reform exercise, the government has allowed 100 per cent FDI in cable and direct-to-home TV operators, duty free shops and investment through automatic route in limited liability partnerships.
It also permitted portfolio investors to buy up to 74 per cent in local private banks, with full fungibility, while palm, coffee and rubber plantations have been opened up for the first time.
Rules for sourcing for single brand retailers particularly for high-tech have been eased by allowing them to sell online without specific permissions. But there is no change in 51 per cent limit for retailers like Wal-Mart in multi-brand retailing.

The government also raised financial power of the Foreign Investment Promotion Board (FIPB) to give single window clearance for investment projects of up to Rs 5,000 crore from Rs 3,000 crore currently.