Modi Government Goes For Radical Liberalisation; 100% FDI In Civil Aviation, Defence

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11:30 pm 20 Jun, 2016


Terming it as a ‘radical liberalisation’, Narendra Modi-led NDA government announced easing of norms in FDI including sectors like defence and pharmaceuticals.

In defence, FDI beyond 49 percent (and upto 100 percent) has been permitted through the government approval route, and in pharmaceutical sector, the government has permitted up to 74 percent FDI under automatic route.


The reforms, which included 100 percent FDI inflows sectors like civil aviation, food processing, e-commerce, helped in reassuring investors.

The government has permitted 100 per cent FDI in India-based airlines. It also included paving the way for companies such as Apple Inc to immediately set shop in India.

The Prime Minister said that the reforms would make India the most open economy in the world.

He further said that India has been rated as number one FDI destination by international agencies.