New Delhi: To the delight of economists and MNCs in the country, the Central government on Monday announced that there will be 100% Foreign Direct Investment (FDI) in crucial areas like defence and trading via a government-approved procedure.
This move is being interpreted as one of the biggest reform push by the NDA government to boost FDI into the country. A total of ten sectors have been opened up by the government which includes defence and aviation, food production and manufacturing, animal husbandry, e-commerce and more.
The FDI limit for defence sector has also been made applicable to manufacturing of small arms and ammunitions covered under Arms Act 1959.
Many economists have heralded this transformative move by the government which was bound to come but had been slighted many a times. This easing up on the FDI policy will entail for a fully-foreign invested production in the country, providing for new avenues in business and employment opportunities.
Reacting to the news, the Bombay Stock Exchange has witnessed a 200 points rise in the Sensex.