India opens itself to the world

In the second wave of foreign investment reforms, FDI is now 100% in civil aviation and food, with relaxed norms for defence and pharma

New Delhi: The Government yesterday launched a second wave of FDI reforms allowing 100% inflows in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals, steps apparently aimed at neutralising fallout of Raghuram Rajan's decision to exit RBI.

The Make in INdia push: The reforms will give a boost to employment and job creation, the Prime Minister tweeted. PIC/PTI
The Make in INdia push: The reforms will give a boost to employment and job creation, the Prime Minister tweeted. PIC/PTI

A significant change in local sourcing policy for single-brand retail trading could now enable US-based Apple Inc to open stores under yesterday’s decisions which also cover broadcasting carriage services, private security agencies and animal husbandry.

The major reform measures were decided at a high-level meeting chaired by Prime Minister Narendra Modi. The Prime Minister’s Office said the decisions will make “India the most open economy in the world for FDI,” but critics said it was a “panic” reaction to Rajan’s decision to exit RBI and return to academia after September 4.

The stock markets also reacted positively to the news of FDI reforms even as they recovered from early morning plunge after talking-up by influential market-men that helped counter Rexit (Rajan’s exit) jitters.

The highlights

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