India plans sweeping liberalisation of FDI
11 November 2015, Nirapad News: India’s government Tuesday announced plans for a sweeping liberalisation of its foreign direct investment (FDI) regime, as Prime Minister Narendra Modi seeks to counter accusations his reform drive is stalling.
The government said it would undertake a raft of reforms to open up 15 areas of the economy, including lifting the caps on FDI in the critical defence, banking and construction sectors.
It said the reforms were aimed at making it easier for overseas companies to do business in India, notorious for its red tape and labyrinthine regulations.
“This exercise… is intended on the one hand to further open up sectors for more foreign investments in the country and also to make it easy to invest in India,” the Commerce Ministry said in a statement.
A spokesman contacted by AFP said details of the new FDI limits for specific sectors were not immediately available, although he said further details would be announced later in the day.
The reforms come after Modi’s Bharatiya Janata Party suffered a drubbing in state elections in Bihar, in a battle fought largely over development in India’s poorest state.