Prime Minister Narendra Modi held a high-level meeting where he reviewed the country’s FDI policy on MondayThe Union government on Monday made some major changes to FDI policy with the objective of providing major impetus to employment and job creation in country.
Monday’s amendments to the FDI Policy are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inflows contributing to growth of investment, incomes and employment.
FDI norms relaxed for single brand retail, civil aviation, airports, pharmaceuticals and animal husbandry.
— Press Trust of India (@PTI_News) June 20, 2016
With this move, the government has allowed 100 per cent FDI in defence, aviation, pharmaceuticals (74%) and broadcast services.
WATCH VIDEO |Modi Govt Liberalises FDI Regime: All You Need To Know
Here is how the markets shot up after the announcement:
4:32 pm Bold & transformative new FDI policy will ensure India will retain its position as world’s top FDI destination, for long time: Raman Singh
4:31 pm
(cntd) focus on creating jobs and ensuring that India becomes a manufacturing hub: Union Minister Nirmala Sitharaman pic.twitter.com/iUQ4C2pQkV
— ANI (@ANI_news) June 20, 2016
//platform.twitter.com/widgets.js
4: 31pm
We’ve made sure that FDI inflows are given a clear direction with an objective of Make in India..cntd: Union Minister Nirmala Sitharaman
— ANI (@ANI_news) June 20, 2016
//platform.twitter.com/widgets.js
3.10 pm: Market reaction to the government’s new FDI policy
Aviation:
SpiceJet 68.70 +6.43%
IndiGo 1048.35 +3.44%
Jet Airways 582.70 +5.96%
Pharma:
Brownfield Pharma: Biocon 727.10 +1.39%
Broadcast:
Dish TV 96.20 +2.56%
Defence:
Rel Defence 66.65 +8.64%
Walchandnagar 153.50 +5.21%
This move by the government has attracted different reactions from political leaders and intellectuals. Here are some of them:
3:20 pm:
Major reason for FDI policy changes is to create more jobs: Das
Decision on FDI liberalization today is a follow up of decisions taken earlier-Economic Affairs Secy Shaktikanta Das pic.twitter.com/hxtgDJSfA9
— ANI (@ANI_news) June 20, 2016
3:10 pm: Aviation Secretary to CNBC-TV 18 – Hike in FDI cap will increase competition in the sector
3:00 pm:
Reform measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16. (1/2)
— PMO India (@PMOIndia) June 20, 2016
2:30 pm:
First really big-ticket eco reform of Modi govt: 100% FDI in avaition, e-commerce & defence, 74% in pharma
— Minhaz Merchant (@minhazmerchant) June 20, 2016