India’s macroeconomics variables have improved considerably in the past year and significant measures have been taken recently to revisit the Foreign Direct Investment (FDI) policy, with a view to further ease of foreign investments into the country. As per recent report by International Monetary Fund (IMF), India is expected to emerge as the fastest growing economy in the world with its GDP growing by 7.3% in 2015.
In a move to further liberalize the FDI policy, the recent move wherein foreign investments across broad based sectors were liberalized is a significant development. The crux of these liberalization reforms was to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of Government route where time and energy of the investors is wasted. Accordingly the Government has decided to introduce a number of amendments in the FDI Policy wherein, changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalilities for foreign investment.