Big Bang Reforms: Modi-Jaitley Burst 15 FDI Crackers
The Narendra Modi government announces FDI reforms in 15 major sectors.
Bihar Loss Not Behind FDI Announcement: Piyush Goyal
Piyush Goyal, Union Power Minister, spoke to Times Now and dissociated the FDI announcement from the Bihar loss and Prime Minister Narendra Modi’s visit to the United Kingdom on November 12.
According to the Power Minister, the government never gave up their “commitment to the people of India,” in the wake of the loss in the Bihar Assembly election.
The gold monetisation and gold coin scheme announced on November 5 and today’s FDI announcements are a result of three months of work, Goyal added.
Eased FDI Limit
- Limited liability partnerships: 100 percent without government nod
- Foreign Investment Promotion Board: Can give single window clearance for investment projects up to Rs 50 billion rupees ($753 million) from Rs 30 billion
Retail
- Duty free shops: 100 percent without government nod
- Same entity for wholesale/single brand retailing: 100 percent without government nod
Banking
- Investment in private banking: FIIs/FPIs/QFIs can invest up to 74 percent
Plantations
- Coffee/rubber/cardamom/palm oil plantations: 100 percent without govt nod
Media
- Telports: 100 pct (up to 49 pct without government approval)
- Direct to Home (TV): 100 pct (up to 49 pct without government approval)
- Cable networks: 100 pct (up to 49 pct without govt approval)=
- FM Radio: 49 pct with govt approval News, current affairs TV channels: 49 pct with government approval
- Non-news TV channels: 100 pct without prior approval
Simplified FDI Routes
Finance Minister Arun Jaitley says FDI has increased 40 percent on a year-on-year basis.
India has become one of the most important destinations for investments, according to the Finance Minister.
Government Aims at Better Ease of Doing Business
According to Finance Minister Arun Jaitley, the government has been trying to relax the ease of doing business in India for the past year and a half.
With these reforms, the government claims that it is trying to deliver on its maxim of “minimum government and maximum governance.”
Making a boost for investment environment, the government reforms seek to rationalise and simplify the process of foreign investments in the country.
Updates from Finance Minister Arun Jaitley’s speech:
- Today’s FDI decisions impact reforms in 15 different sectors but investment points are around 32.
FDI has increased 40 percent year-on-year basis. - India has become one of the most important destination for investments.
- Growth has been driven by investments from both public and private sector.
- World bank and world economic forum have favourably looked at India.
- FDI lends impetus to the economic growth in the country.
- FDI is an additionality to our pool of resources.
- The government has been trying to relax the ease of doing business in India for the past one and half year.
- Most important reform has been in the construction sector.
Some outdated conditionalities which existed have been either done away with or easened.
After the poll drubbing in Bihar, the Narendra Modi-led government is pushing for economic reforms in 15 sectors including banking, pharmaceuticals, plantation, defence, broadcasting and construction.
Here is the list of the 15 major sectors for which Foreign Direct Investment (FDI) reforms have been announced:
- Limited Liability Partnerships, downstream investment and approval conditions
- Investment by companies owned and controlled by Non-Resident Indians (NRIs)
- Establishment and transfer of ownership and control of Indian companies
- Agriculture and Animal Husbandry
- Plantation
- Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities
- Defence Broadcasting Sector
- Civil Aviation
- Increase of sectoral cap
- Construction development sector
- Cash and Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs)
- Single Brand Retail
- Trading and Duty-free shops
- Banking-Private Sector
- Manufacturing Sector
Finance Minister Arun Jaitley will soon brief the media about the economic reforms.
The Quint brings you live updates of the announcements. Download the document here.
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