FDI norms further relaxed to boost economy

INVESdinvIn a bid to reawaken economic reform Prime Minister Narendra Modi eased restrictions on foreign direct investments, allowing foreigners to own 100 percent in cable and direct-to-home TV operators, duty free shops and limited liability partnerships.

Overseas investors can buy a 49 percent stake in defence companies and regional airlines without government approval, and where needed a simpler process has been introduced.

Since the recent setback in Bihar Modi is looking to boost investor confidence as both stocks and the rupee dropped.

In further measures, investors can buy up to 74 percent in local private banks and caps on palm, coffee and rubber plantations have been phased out.

Retailers can also seek relaxation in sourcing rules.

Finance Minister Arun Jaitley said “We have liberalised the norms to make it more attractive for foreign investors”.