Finance Minister Arun Jaitley on Monday proposed to significantly relax the FDI policy in several sectors, including insurance and pension and asset reconstruction companies, to attract more overseas investments.
“I would like to announce further reforms in our FDI policy. The changes proposed are in the area of insurance and pension, asset reconstruction companies, stock exchanges etc,” Jaitley said in his Budget speech for 2016-17 here.
He also said the foreign direct investment (FDI) policy has to address the requirements of farmers and the food processing industry as a lot of fruits and vegetables grown by farmers either do not fetch the right price or fail to reach the market.
“Food processing industry and trade should be more efficient. Hundred per cent FDI will be allowed through the FIPB route in the marketing of food products produced and manufactured in India,” he said.
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He hoped this will come as an impetus to the food processing ministry to boost the sector.
“This will benefit farmers, give impetus to the food processing industry and create vast employment opportunities,” he added.
The government has already relaxed the FDI policy in over a dozen sectors, including defence, railway, medical devices and civil aviation.
FDI into the country increased by 40 per cent to USD 29.44 billion during April-December in the current fiscal.