Government of India Reforms 100% FDI

The Indian government launched a second wave of FDI reform allowing 100% inflows in civil aviation, e-commerce and food processing sectors. New window of opportunity has been opened for multiple sectors like pharmaceuticals, retail, aviation, defense, food, private security. Now, these sector's will be completely open for foreign ownership.


This step will attract investments from global corporation. Now, most of the sectors will be under direct approval route, except few listed. PM Modi Tweeted on 20th June 2016 that "India is most open market in the world for FDI".

PM also tweeted, "This is 2nd major reform after the last radical changes announced in Nov 2015"

At present in India as per FDI regime permits foreign companies to have only 49% of equity share. But, after this step Foreign Investment will go beyond 49%.
The FDI inflow in India has increased by astounding amount of $55.46 Billion in year 2015-16 as compared to year 2013-14 it was around $36.04 Billion.


Reforms in Startups


With 100% FDI, startups can seek for more keen investors, this step will boost small scale business and startups. Hence, we will see rise in entrepreneurs in the near future, and more jobs will be created. Rate of increase in employment will rise which will indeed improve Indian economy.


Reforms in Aviation


Indian aviation market is growing with growth rate of 21%, which is the fastest growth rate in the world. With current growth rate, India has potential of becoming one of the largest aviation market in the world.

The National Civil Aviation Policy will promote regional connectivity, thus it will help in economy growth of tear 2-3 cities of India, New regime in FDI will cause major improvements in the Indian economy.


Reforms in Defense


India's estimated budget for defense for year 2016-17 is about Rs 3.4 trillion, with this budget India can buy state of the art equipment for defense. India is the biggest importers of arms and ammunition in the world. India imports more than 60% of its defense equipment form developed European countries. With this step India will start manufacturing Defense equipment in India. Arms manufactures will directly invest in India. 

Reforms in Pharmaceutical


For the development of pharmaceutical sectors, Government of India (BJP) has increased FDI limit to 74% under FDI automatic route in pharmaceutical ventures.

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