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Most sectors except certain strategically important sectors open for 100% FDI under the automatic route

FDI_Dollar
Photo: Anand KZ | Pixabay

To promote FDI in the country, the Government has put in place an investor-friendly policy, wherein most sectors except certain strategically important sectors are open for 100% FDI under the automatic route, Minister of State for Commerce and Industry, Som Parkash said in reply to a parliament question.

It may be noted that the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive and investor friendly destination. Changes are made in the policy after detailed consultations with stakeholders including apex industry chambers, associations, sectoral ministries/ departments and representatives of industries/groups and other organizations. Government has recently undertaken a number of reforms across sectors like Defence, Petroleum and Natural Gas, Insurance etc.

The Department for Promotion of Industry and Internal Trade (DPIIT) is the Nodal Department for coordinating the initiatives under Ease of Doing Business which are aimed at creating an investor-friendly ecosystems across the country. In addition to ongoing schemes of various Departments and Ministries, Government has also undertaken various steps to boost domestic and foreign investments in India. These include the introduction of Goods and Services Tax, reduction in Corporate taxes, financial market reforms, consolidation of public sector banks, Foreign Direct Investment (FDI) policy reforms, reduction in compliance burden, various policy measures to boost domestic manufacturing, to name a few.

DPIIT, in coordination with States and Union Territories (UTs), is spearheading various reforms to improve the business regulatory environment in the country. DPIIT undertakes a dynamic reform exercise called Business Reforms Action Plan (BRAP), wherein all States and UTs are assessed on the basis of implementation of designated reform parameters. The focus of the reforms has been on streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. The Action Plan for the year 2022 covers 352 reform points.

All the States and UTs, including Jharkhand, Delhi and West Bengal have also participated actively in this exercise over the years and reforms implemented by them are recorded on the BRAP Portal (https://eodb.dpiit.gov.in/).The exercise boosts competitive federalism among the States/UTs and thereby helps to further facilitate investor-friendly ecosystems across the country.

Comprehensive reforms have been undertaken by the Public Sector Banks (PSBs) under Enhanced Access and Service Excellence reforms agenda to improve the ease of doing business

The objective of amalgamation of the banks was to facilitate consolidation among PSBs to create strong and competitive banks capable of achieving economies of scale and realization of synergy benefits with wider product and service offering to customers. As a result of this effort, customers of amalgamated banks received access to increased number of branches and ATMs from which they can now avail banking services.

Customers have also received access to a larger bouquet of products and services through harmonization of the same across banks being amalgamated together and enhanced their lending capacity for loans of a larger size. Further, the increased scale and customer base in the amalgamated banks has also enabled banks to opening/reorganizing controlling offices and processing centers, equipping them for better customer serving.

 

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