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World News

Radical change in India's FDI policy

The Indian Union government on Monday radically liberalised the FDI regime by permitting 100 per cent foreign direct investment under government approval route for almost every sector, including defence.

"With these changes, India is now the most open economy in the world for FDI," said a Commerce Ministry statement.

This is the second biggest reform in FDI after November 2015.

The defence sector is now completely opened up to foreign direct investment through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded. The condition of access to ‘state-of-art’ technology in the country has been done away with.

The government also permitted 100 per cent FDI in civil aviation, animal husbandry and trading, including through e-commerce, in respect of food products manufactured or produced in India.

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