Govt pushing for big-ticket FDI reforms
To give a thrust to India’s sagging economy, which has decelerated to a five-year low of 5.8% in the March quarter and is affected by a consumption slump, the Union cabinet hasmade a number of changes in foreign direct investment (FDI) regulations. These include measures such as easing rules for overseas single-brand stores, 26% investment in digital media and permitting FDI through the automatic route in contract manufacturing and all areas of coal mining. “The changes in FDI policy will result in making India a more attractive destination, leading to benefits of increased investments, employment and growth,” the Cabinet stated.
This comes in the wake of measures announced by the Finance Minister to boost investor sentiment and spur economic growth. “This government since 2014 has kept reforms as a part of the agenda… Reform is a continuous process and we are treating it as a continuing endeavour,” the minister said.