The Union cabinet going a step further in government’s push to policy reforms, has given ex-post-facto approval to the easing of foreign direct investment (FDI) policy in 15 sectors that was approved by the Prime Minister Narendra Modi last month.
The Cabinet at its meeting approved all the relaxations in FDI policy for 15 sectors, which include; increasing foreign-investor limits in several sectors including private banks, defence and non-news entertainment media; and allowing property developers to sell completed projects to foreign investors without lock-in periods
The government had freed the restrictions in the construction sector by allowing overseas investors to exit and repatriate investment even before project completion, foreign direct investment (FDI) up to 49 percent stake in defence firms and regional airlines has been allowed without government nod.
The government had also raised financial power of the Foreign Investment Promotion Board (FIPB) to give single window clearance for investment projects of up to Rs 5,000 crore from Rs 3,000 crore.
