New Delhi: The Union Government opened its door to foreign direct investment (FDI) in nine sectors on Monday, which in turn brought back an upbeat mood to the stok market.
Defence, food products, civil aviation, pharmaceuticals, broadcasting, retail trade are some the sectors where FDI norms were relaxed with an intention to push reforms and create jobs.
A major change is the decision to allow 100 per cent FDI in defence without the mandatory condition of bringing in “state-of-the-art” technology by the foreign partners.
“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,” a PMO release said.
E-commerce companies that hawk India-manufactured food products can now get up to 100% FDI. This is expected to make way for the chain of Apple stores across India.
The FDI limit in Civil avaiation was raised to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval.
The Sensex jumped 241.01 points to close at 26,866.92 after the new FDI norms were announced. The Sensex jumped 241.01 points to close at 26,866.92 after the new FDI norms were announced. The RBI Governor’s statement that he would not seek a second term after September 4, surprised global investors and left its impact on the market two days ago.
