Govt mulling further FDI regime easing, more tax benefits for startups

The commerce and industry ministry is working on a 100-day reforms agenda which may include proposals such as further liberalising FDI regime, easing investments from neighbouring countries, and more tax benefits for startups, an official said.

The proposals may also include easing certain environmental norms for the leather and footwear industry, liberalised rules to promote exports through e-commerce hubs, and integrating lab testing and certification requirements for various sectors, the official said.

The government is embarking on the next 100-day agenda of transformation to take India on a fast track to developed nation.

In Lokmat global economic convention, Commerce and Industry Minister Piyush Goyal said that in the next 100 days, the government will follow the clarion call given by Prime Minister Narendra Modi on August 15 to take India forward on a fast-tracked pathway.

These proposals would help boost the country's exports and foreign direct investments (FDI).

During April-July 2025-26, exports increased by 3.07 per cent to $ 149.2 billion, while imports rose 5.36 per cent to $ 244.01 billion. The trade deficit during the first four months of 2025-26 was $ 94.81 billion.

FDI into India rose by 13 per cent to $ 50 billion in 2024-25.

In July 2024, a pre-budget Economic Survey has made a strong case for seeking foreign direct investments from China to boost local manufacturing and tap the export market.

At present, the bulk of the FDI coming into India falls under the automatic approval route, however, FDI from countries sharing land borders with India needs mandatory government approval in any sector.

Countries which share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.

Prime Minister Narendra Modi on August 15 announced a 10-year project to develop an indigenous defence shield to protect India's vital military and civilian installations.

In his Independence Day address from the ramparts of the Red Fort here, Modi also hinted at New Delhi's resolve to reduce dependence on foreign technologies for military platforms as he called for developing jet engines within the country for India's fighter aircraft.

The government is also taking a number of steps to promote startup ecosystem in the country. It provides number of incentives to these budding entrepreneurs such as income tax benefits.

The commerce ministry's arm DGFT is working on steps to promote exports through e-commerce medium as huge export opportunities are there in the sector.