The Department of Industrial Policy and Promotion (DIPP) issued a consolidated foreign direct investment (FDI) policy document on Tuesday, retaining the policy on FDI in multi-brand retail that allows up to 51% foreign investment.
Bharatiya Janata Party (BJP) government had opposed opening of multi-brand retail to foreign investment but has not reversed the UPA policy.
The document includes all changes in India`s FDI policy over the last year. The 119-page consolidated document will make policy simple and in one place for investors.
The consolidated FDI circular released on Tuesday incorporated the changes made in the last one year, including liberalisation of sectors such as railways, defence, medical devices, insurance and construction. DIPP is the nodal agency for the FDI policy. FDI in defence has been raised to 49% from 26%. It can even go up to 100% in select cases.
Changes in FDI policy are made through the year by issuing press notes. The UPA government started the practice of consolidating these changes in a single document twice a year.This is the first document issued by the new NDA government.
Subsequent to assuming power, NDA has allowed 100% foreign investment in railway infrastructure., construction, operation and maintenance of suburban corridor projects through PPP, high-speed trains, dedicated freight lines, railway electrification and mass rapid transport systems.
“In the last eight-nine months, we have opened up every single aspect of India`s economy. We have opened up our defence sector, construction, insurance, medical devices… and other than multibrand retail. India today is the most open economy in the world,” DIPP secretary Amitabh Kant had said earlier in the day.