FDI norms in certain sectors likely to be eased under new government: DPIIT Secretary
Secretary in Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh has said that India has recently relaxed foreign direct investment (FDI) norms in the space sector and there is a possibility of further FDI liberalisation in certain other areas when the new government will come to power. He said that in the last few years, India has liberalised FDI policy in many segments. India has one of the most liberal FDI policies in the world and in fact more liberal than many Southeast Asian countries that the country is often compared with.
The Secretary further said the government has eased FDI norms in the space sector by allowing 100 per cent overseas investment in making components for satellites, as part of efforts to attract overseas players and private companies into the segment. According to the government data, FDI in India declined 13 per cent to $32.03 billion in April-December 2023, dragged down by lower infusion in computer hardware and software, telecom, auto, and pharma sectors.
Talking about the success of the production linked incentive schemes (PLI), he said so far Rs 1.13 lakh crore of investments have come in and the beneficiary companies have recorded over Rs 9 lakh crore of sales, exports of Rs 3.45 lakh crore and created jobs for over 8 lakh people. The scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high efficiency solar PV modules, advanced chemistry cell battery, drones, and pharma with an outlay of Rs 1.97 lakh crore.
