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India eases restrictions on FDI, hoping for boost

Jun 20, 2016, 12:35 PM EDT
(Source: Global Panorama/flickr)
(Source: Global Panorama/flickr)

India eased restrictions on FDI, hoping for a boost by allowing 100% foreign ownership in many new industries.

Reuters reports:

India announced on Monday sweeping reforms to rules on foreign direct investment, clearing the way for Apple (AAPL.O) to open stores in the country and announcing easier terms for investors in sectors ranging from civil aviation to pharmaceuticals. The move comes two days after central bank governor Raghuram Rajan, a darling of financial markets but under pressure from political opponents at home, announced he would not seek another term, a surprise move that raised concerns about whether reforms he set in motion would stall. "These changes are fairly significant, particularly if you look at them in the context of what happened over the weekend with Governor Rajan's decision to step down," said Shilan Shah, India economist at Capital Economics in Singapore. mobile.reuters.com/article/businessNews/idUSKCN0Z60X8

The Times of India writes:

"Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI," Modi said in a tweet. In a second tweet, he said the changes would provide a "major impetus to employment and job creation in India." timesofindia.indiatimes.com/business/india-business/India-now-most-open-economy-in-world-for-FDI-PM-Narendra-Modi/articleshow/52832066.cms

The Indian Express notes:

Reform measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16 as against US$ 36.04 billion during the financial year 2013-14,” it added. The Office also noted that now been decided to permit 100% FDI under government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.indianexpress.com/article/business/economy/radical-fdi-100-per-cent-changes-make-india-most-open-economy-in-the-world-prime-minister-narendra-modi-2864742