With recent focus on developing the trade and people-to-people relations between India and New Zealand, the recent changes made to the Foreign Direct Investment (FDI) policy by the Government of India on June 20 provides New Zealand businessmen better investment opportunities. This liberalisation now makes India the most open economy in the world for FDI. Highlights of the latest changes are as follows:
1. 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India
2. FDI in defence sector: Foreign investment beyond 49% has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to ‘state-of-art’ technology in the country has been done away with.
3. FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions
4. Pharmaceutical
a) 100% FDI under automatic route in greenfield pharmaceutical projects
b) 74% FDI under automatic route in brownfield pharmaceuticals projects and 100% FDI under government approval in these projects
5. Civil Aviation Sector
a) 100% FDI under automatic route in Brownfield Airport projects
b) FDI up to 490% under automatic route in Schedules Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service and 1005 FDI in these services under Government approval
6. Review of Entry Routes in Broadcasting Carriage Services; FDI Policy on Broadcasting Carriage Services has also been amended. New sectoral caps and entry routes are as under:
Sector activity New cap and route (all 100% Automatic)
1. Teleports (setting up of up-linking HUBs/Teleports)
2.Direct to Home (DTH)
3. Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking)
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