Images of India : India’s FDI party begins…

fdiIndia announced sweeping reforms to rules on foreign direct investment, opening up its defence and civil aviation sectors to complete outside ownership and clearing the way for Apple to open stores in the country (June 20). Other single-brand retailers like furniture giant Ikea also stand to benefit. The new reform measures also relax restrictions on inbound investments in pharmaceuticals. Defence contractors that have been reluctant to transfer technology to manufacture equipment in India would get the right to own local operations outright, with government approval, up from a cap of 49% previously. The government also allowed foreign companies to own up to 74% in ‘brownfield’ pharmaceuticals projects without prior government approval. India already allows 100% ownership of greenfield pharma businesses.