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ARTICLE · 01 JULY 2016

LexUpdate: Changes In FDI Policy

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It is stated that most of the sectors would now be under the automatic approval route except for a small negative list.

IndiaGovernment, Public Sector
LexCounsel Law Offices
LexCounsel Law Offices
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In steps to further liberalise and simplify the foreign direct investment ("FDI") regime in India and with the objective of providing major impetus to employment and job creation in India, the Government of India has announced sweeping changes to the FDI policy. It is stated that most of the sectors would now be under the automatic approval route except for a small negative list. The last 2 years have witnessed major FDI policy reforms in a number of sectors including in defence, insurance, broadcasting, single brand retail trading, manufacturing, civil aviation and asset reconstruction companies. Changes now introduced include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. Brief details of the changes are as follows:

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