In an indication of the government’s policy direction, President Pranab Mukherjee in his address in the joint session of Parliament had said, “Government will follow a policy of encouraging investments… which will be allowed in sectors that help create jobs and assets”.
* The President in his address had also said the government will create a policy environment which is predictable, transparent and fair.
* The commerce and industry ministry has already moved a draft Cabinet note for relaxing FDI cap in defence, while it is working on a Cabinet note for FDI in railways.
* The department of industrial policy and promotion has already written to states to implement the best practices for improving the conditions of doing business in the country.
* In the upcoming Budget, announcements related to bringing in certainty and rationalisation of tax policies are expected to boost FDI in the country. Further, with debate on simplifying laws like land acquisition act already started, investors are expecting conducive environment to invest money in India.
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