Liberalization Of FDI Caps

Background:

The Union cabinet has approved¹ major amendments in the Foreign Direct Investment (hereinafter referred to as 'FDI') policy on 10 January 2018 which have been introduced with the intention of liberalizing and simplifying the extant policy on FDI for offering ease of doing business in the country. The government has stated that the country had potential to attract far more foreign investment, which could have been achieved only through further liberalizing and simplifying the FDI regime. In furtherance of the same, these amendments are aimed at yielding larger FDI inflows to increase investment, income and employment. Note that during the year 2014-15, total FDI inflows received were US $ 45.15 billion as against a total FDI of US $ 60.08 billion in the financial year 2016-17, which is an all-time high.