In order to make India a more attractive destination for investment, the Indian government is considering relaxing the FDI rules.
With the intent of making India a $5 trillion economy, the government is ready to relax the foreign investment rules, which will make India a more investment appealing country.
- While presenting the annual budget for 2019/20, Finance Minister Nirmala Sitharaman gave hints on relaxing FDI rules in the aviation, media, animation and insurance sectors.
- Government is also expected to ease rules for single-brand retailers.
- This could be the move by the Modi government to tackle economic slowdown and foreign inflows.
- The government is under pressure to allure foreign investors because of India’s investment climate after the new FDI rules for the e-commerce sector.
- According to the Reuter’s report, the proposals included the extension of FDI limits in some of the sectors, while easing rules for others.
- The insurance sector will see a 74% investment under the current proposal with 100% FDI in insurance broking.
- The government may ease the local-sourcing regulations for the single-brand retail sector.
- Moreover, single-brand retailers may now sell goods online without first opening physical stores.
