India Offers Transparent and Inclusive FDI Policy Framework: Minister: India is offering a transparent, predictable and comprehensive FDI policy framework for investments and the investment Friendliness Index of State (FDI) Is set to be launched this year, the government said on Tuesday.
India Offers Transparent and Inclusive FDI Policy Framework
New Delhi, India is offering a transparent and inclusive FDI policy framework for investments To promote FDI the government has put in place an investor-friendly policy, and the Investment Friendliness Index of States is set to be launched this year, the government said on Tuesday.
Expert certain strategically important sectors are open for 100% FDI under the automatic route. More than 90%of the FDI inflow is got under the automatic route. India has undertaken a series of reforms aimed at liberalising its FDI Policies, to stimulate economic growth and encourage foreign capital inflows, informed Union Minister of State for Commerce and Industry, Jitin Pradada, in a written reply in the Lok Sabha in parliament.
FDI Policy Framework
To promote FDI, the Government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100%. In the recent past reforms in the FDI policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gs. Telecom and Space. FDI in the Defence sector is allowed up to 74% through Automatic Route for companies seeking new industrial licenses. 100% FDI in the Telecom Sector is allowed under the Automatic Route. The budget also announced the next increase of the FDI sectoral cap for the insurance sector from 74% to 100%. This enhanced limit will be available for those companies, which invest the entire premium in India.
Next, The Government of India always strives to attract more FDI by removing regulatory barriers, streamlining processes, developing infrastructure, bettering logistics and improving the business environment through the ease of doing Business.
According to the new FDI Policy, an entity of a country which shares a border with India or where the beneficial owner of investment into India is situated or is a citizen of any such country, can invest only under the government route.
The government, through the Jain Vishwas (Amendment of provisions) Act 2023, has decriminalized 183 provisions across 42 Central Acts from 19 Ministries/ Departments to enhance the ease of living and EoDB. The government will also be bringing up the Jan Vishwas 2.0 bill, aiming to further improve the business environment.
In the union budget 2025, it was announced that a high-level Committee for Regulatory reforms will be set up to strengthen trust-based financial government and take transformational measures to increase EoDB, especially in matters of inspections and compliances. The country and nudge FDI, various initiatives are being undertaken.
The government of India released the Business Reforms Action Plan 2024 ranking and logistics Ease Across Different States Report to communicate to potential investors examples of a positive business ecosystem as like as logistics performance undertaken by various states and UTs.
Further in the Union Budget 2025, it was announced that an investment Friendliness Index Of Status will be launched in 2025 to further the spirit of competitive cooperative federalism.
FDI directly supplements the domestic capital and brings technology and skill to the sectors of direct entry. It also has indirect multiplier effects on other sectors that are related to FDI thereby stimulating financial growth and leading to increased production, exports and employment generation. The convergence of all aforementioned initiatives will streamline regulatory processes, bolster economic growth, and foster greater investor confidence in India`s business landscape.
This information has been provided by the Union Minister of the State of Commerce and Industry, Jitin Prasada in a written reply in the Lok Sabha on Tuesday. Prasada further start that to further strengthen a seamless business regulatory framework across the country and nudge states to promote healthy competition to attract investment including FDI, Various initiatives are being undertaken. In 2025 inhanced limit will be available for those companies, which invest the entire premium in India.
Conclusion
In this article we discussed India Offers Transparent and Inclusive FDI Policy Framework The government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100 per cent FDI under th automatic route. Futher 100 % FDI in the telecom sector is allowed under the automatic route.