Narendra Modi government made easy rules and the result is Foreign direct investment inflows hit an all-time high of $60.1 billion in 2016-17.
Most of the investment covers defence and railway segments, stated by the Commerce and Industry Ministry on Friday. “The country has now become the topmost attractive destination for foreign investment,” the ministry said in a statement.
At the end of March 2016, $55.6 billion inflows were marked which was a record at that time. But, it took on by $60.08 billion in the current fiscal year of 2016-17.
Infrastructure and Defence were made conservative by Central Government since their administration started in 2014. FDI reforms were also carried out in financial sector, medical devices and construction sectors.
FDI rules were suddenly updated in the field of broadcasting, retail trading and air transport to boost their performance and provide better product for nation. The limit was once again reconsidered by Central Government as investment cap was major barrier earlier.
It amended legislation to hike the foreign investment cap to 49% in insurance and pension from the earlier 26%.
“The momentum of positive business climate was further ignited with launch of Make in India initiative in September 2014,” the ministry said.
On the contrary, the government hiked 100% FDI with unqualified condition in retail trading of food products that should be manufactured or produced in India anyway.
An introduction of composite caps in the FDI policy and raising the FIPB approval limit boosted the promotion and interest of investors to do business in World’s Largest Democracy.