New Delhi: To attract investment, the government may ease foreign direct investment (FDI) norms in today’s Cabinet meeting. Some key sectors, such as single-brand retailing and contract manufacturing, may attract 100 per cent FDI. Experts believe this move will aid in boosting the economy.
Earlier, the government had committed to ease FDI norms in a host of sectors. Finance minister Nirmala Sitharaman during her budget speech had said that the government will examine suggestions to further open up FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders.
According to the reports, private investment failed to uplift India’s economy as expected, so introducing FDI will be helpful as country is facing the slowdown. Currently, in the existing foreign investment policy, 100 per cent FDI is allowed in the manufacturing sector under the automatic route.
The slowdown in India’s economic growth has already resulted in job loss of lakhs of employees in the many sectors, including the crucial automotive sector.
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