ARTICLE · 19 JANUARY 2018

Further Liberalization Of The FDI Regime

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The Union Cabinet, on January 10, 2018, approved certain key amendments to the Consolidated FDI Policy Circular of 2017 (the "FDI Policy").

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1. INTRODUCTION

The Union Cabinet, on January 10, 2018, approved certain key amendments to the Consolidated FDI Policy Circular of 2017 (the "FDI Policy").1 The amendments aim to further liberalize and simplify the FDI Policy to create a more foreign investor-friendly atmosphere and, in turn, attract more foreign direct investment ("FDI") in the country.

Over the past few months, the Government has been making concerted efforts in this direction to increase the ease of doing business in the country. This amendment marks another step in a series of steps already taken by the government in this regard, including the recent amendments to the regime governing the transfer and issue of securities held by non-residents2 and the notification of the new rules consolidating the filing and reporting requirements under the Foreign Exchange Management Act, 1999.3

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