The Commerce and Industry Ministry released the next edition of its consolidated FDI policy document, incorporating all the changes made over the past year.
The Department of Industrial Policy and Promotion (DIPP) said the new “circular will take effect” from Monday. The consolidated policy is a compilation of the various decisions taken by the government in the past one year.
The DIPP, which deals with FDI related matters, compiles all policies related to foreign investment regime into a single document to make it simple and easy for investors to understand.
Investors would otherwise have to go through various press notes issued by the department, and the RBI regulations to understand the policy. The government updates the policy every year.
The whole exercise is aimed at providing an investor friendly climate to foreign players and, in turn, attract more FDI to boost economic growth and create jobs.
During the last one year, the government has liberalised FDI policy in over a dozen sectors, including defence, civil aviation, construction and development, private security agencies and news broadcasting.
Foreign investments are considered crucial for India, which needs around USD 1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth.
Foreign investments will help improve the country’s balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.