India liberalized FDI rules in various sectors
24 Jun 2016
On 24 June 2016, India introduced another comprehensive FDI liberalization policy, taking effect immediately. Changes introduced in the policy include increases in sectoral caps, bringing more activities under the automatic route and easing of conditionalities for foreign investment. The policy relates to several sectors, including in civil aviation, defence, pharmaceuticals, food product retail trading, broadcasting, private security agencies, single brand retail trading, and animal husbandry. For example, the government permitted 100 per cent FDI under the government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India. It allowed 100 per cent FDI through the automatic route in broadcasting carriage services (such as teleports, direct to home and mobile TV) and in brownfield airport projects. It also increased the FDI limit in air transport services to 100 per cent, with FDI up to 49 per cent permitted under the automatic route and FDI beyond 49 per cent through government approval. In the defence sector, it abolished the condition of “state-of-art” technology to acquire government approval for FDI.
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Entry and establishment (Ownership and control, Approval and admission)
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