Modi government approves 100% FDI in aviation and food, easier norms for defence, pharma, single-brand retail
The government announced drastic changes in India's FDI policy, opening up the airline business to 100 percent ownership."India is now the most open economy in the world for foreign direct investment," Hon. Prime Minister Narendra Modi said. He further added, "Now most of the sectors would be under automatic approval route”.
Barring the sectors on this list, FDI up to 49 per cent will be allowed automatically, marking an important shift in the way the policy is administered. The government had put acquisitions in the pharma space on the approval route following large-value purchases of Indian companies by overseas ones, triggering fears that essential drugs could become too expensive.
Prof. Amit Medhekar