The release said the reforms are aimed at drawing in foreign investors to spur job creation in India. “With a view to aid in modernisation of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been made a decision to permit 100 per cent FDI under automatic route in brownfield airport projects”, the PMO said.
Those rules will now be waived for a period of three years, and possibly up to a maximum of eight if the company is offering “state-of-art” and “cutting edge” technology. But while looking at the proposals that call for investment beyond 49 per cent, a condition that they will bring with them access to “state-of-the-art” technology has been done away with.
The government has allowed 100 percent FDI under the automatic route. Currently, FDI up to 100% is permitted in new projects in the pharma sector.
Apple has been lobbying hard for the exemption from the mandatory 30 per cent local sourcing on the grounds that its products have such highend technology and were therefore could not be sourced locally.
“Defense contractors that have been reluctant to transfer technology to manufacture equipment in India would get the right to own local operations outright, up from 49 percent previously”, the statement said. Now that Tony Fernandes of Air Asia has got Overseas Citizen of India status, we need to wait and see whether the 100 percent FDI under automatic rule will apply to his business.
The other big gainer is the civil aviation sector where 100% FDI is to be now allowed under the automatic route in case of brownfield airport projects as against the current limit of 74%. Beyond 49 percent and up to 74 percent would require government approval.
Back in 2012, then UPA government had permitted 49 per cent FDI in domestic airlines by foreign carriers.
An opportunity for booming the e-commerce sector is given by enabling 100% FDI in trading in the food industry, including trading in e-commerce.
Earlier: 49 per cent FDI under government approval route.
Apple is one step closer to opening stores in India after the country’s government on Monday moved to ease restrictions on foreign investment.
Government has allowed 100 percent FDI in Animal Husbandry including breeding of dogs, Pisciculture, Aquaculture and Apiculture under Automatic Route under controlled conditions. However, the limit for foreign airlines investing in Indian airlines will continue at 49 per cent.
The Centre also allowed automatic approval of 100 per cent FDI in broadcasting activities such as cable networks, mobile television, teleports, direct-to-home TV, and headend-in-the sky broadcasting services. The policies are a continuation of the reforms announced in November last year, which, according to the government, have increased FDI inflows from $36.04 billion in 2013-14 to $55.46 billion in 2015-16, the highest ever within a financial year.
Sweeping changes to foreign investment rules in some major sectors, which show that India’s very much open to worldwide investment.