LIVE: Govt approves 100% FDI in aviation, defence, here are the reactions

[danger007]

As per the Government's release, most of the sectors now will have 100 per cent FDI except a few.
BY: EXPRESS WEB DESK | NEW DELHI |
UPDATED: JUNE 20, 2016 3:06 PM
The Central government on Monday made some major changes to FDI policy with the objective of providing major impetus to employment and job creation in country. As per the Government’s release, most of the sectors now will have 100 per cent FDI except a few.
With this move, the government has allowed 100 per cent FDI in defence, aviation, pharmaceuticals and broadcast services.



Here is how the markets shot up after the announcement:

 

[danger007]

In order to provide major impetus to employment and job creation in India, the government on Monday liberalized its foreign direct investment strategy, bring most of the sector under automatic approval route. The decision, which is second in series after radical liberalization in FDI in November 2015, was taken at a high-level meeting chaired by Prime Minister Narendra Modi today.

"Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI," an official statement from PMO said.

Key changes include allowing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India and permitting up to 100 per cent FDI in defence sector. The other sectors that have benefitted include the broadcasting, pharmaceuticals, civil aviation, single brand retail among others.

In last two years, BJP-led NDA Government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, among others.

As a result. FDI inflows into the country has increased at $ 55.46 billion in 2015-16 as against $36.04 billion during 2013-14. This is the highest ever FDI inflow for a particular financial year.

"However, it is felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime," the statement said. Accordingly the government has brought about increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment.

"These amendments seek to further simplify the regulations governing FDI in the country and make India an attractive destination for foreign investors," it said.

http://m.economictimes.com/news/eco...defence-74-in-pharma/articleshow/52831262.cms




@Abingdonboy @jbgt90 @Joe Shearer @arp2041

 

[NKVD]

What Predicted Today Single Person absence Cannot be Mean effects on Market

Rajan Was Excellent Man but There are Better Replace Ment

 

[GodToons]

In Defence.. It means F18 coming to India with No/ minimum Indian entity partnership...

 

[danger007]

What Predicted Today Single Person absence Cannot be Mean effects on Market

Rajan Was Excellent Man but There are Better Replace Ment

Removing rajan is not a matter .. but the way mud throwed at him is not nice . get my point.. and thread is not about him..

 

[noksss]

Need more clarity on 100% FDI defense before we celebrate

 

[Nimitam]

Need more clarity on 100% FDI defense before we celebrate

Not required.

Let them be free to invest and bring FDI. We can decide if to purchase them or not. There is ZERO commitment to purchase, only opening up of the market.

Removing rajan is not a matter .. but the way mud throwed at him is not nice . get my point.. and thread is not about him..

For a man who though he could get away by making snide comment on India that "one eyed man is king", some mud throwing is good so that the next man knows how to keep his trap shut.

 

[Panther421]

Indeed a good news..More jobs,more competition...

 

[kaykay]

Wait!! There's a catch with 100% FDI in defence. Ain't it only for govt to govt deals?

 

[Mustang06]

From what I've read in defence 100% FDI is on conditional basis. Deals which may bring state of the art technology in the country. It's also applicable to manufacturing small arms and ammunition.

Wait!! There's a catch with 100% FDI in defence. Ain't it only for govt to govt deals?

 

[indiatester]

From what I've read in defence 100% FDI is on conditional basis. Deals which may bring state of the art technology in the country. It's also applicable to manufacturing small arms and ammunition.

IIRC, that already exists. The new rule could mean that this may be for non-state of the art technologies?

 

[Mustang06]

IIRC, that already exists. The new rule could mean that this may be for non-state of the art technologies?

Sorry sir, no idead about that.

 

[indiatester]

Sorry sir, no idead about that.

Manu Pubby explained it

https://twitter.com/x/status/744853543492845570

https://twitter.com/x/status/744853816994992128

 

[kadamba-warrior]

Removing rajan is not a matter .. but the way mud throwed at him is not nice . get my point.. and thread is not about him..

Nope, I think it was an outright mistake to get rid of him - not just the way they did it. Don't try to fix what is not broken!

Can't help but feel that Mr. Rajan was hounded out by a loose-cannon Swamy. He, by his own admission, had a lot of work yet to do as a Central Banker - like cleaning up what is essentially a very very sick banking sector that has been allowed to suffer due to chronic crony capitalism. He was a good man for the job especially with global recession on the horizon.

Now I can only hope that this action doesn't come back to haunt the India growth story.

 

[dray]

Nope, I think it was an outright mistake to get rid of him - not just the way they did it. Don't try to fix what is not broken!

Can't help but feel that Mr. Rajan was hounded out by a loose-cannon Swamy. He, by his own admission, had a lot of work yet to do as a Central Banker - like cleaning up what is essentially a very very sick banking sector that has been allowed to suffer due to chronic crony capitalism. He was a good man for the job especially with global recession on the horizon.

Now I can only hope that this action doesn't come back to haunt the India growth story.

Raghuram Rajan is working with Indian government since November 2008 it various important posts, India's economy went downhill under his watch, India's banking sector became sick with huge NPAs while he was in a position to influence decisions and change things, I think a part of the media is creating a hero out of nothing, there is a motivated propaganda campaign going on!
Also not to forget that Raghuram Rajan is still a member of the group 'Group of 30' managed and funded by Rockefeller foundation. http://group30.org/members/bio_current/rajan

On topic: Good move.