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Highlighting the measures being taken to facilitate Foreign Direct Investment (FDI) flows in the country, Union Minister of State for Commerce and Industry, Jitin Prasada has said that the Government has put in place a policy framework for Foreign Direct Investment that is transparent, predictable, and easily comprehensible. Besides, he said to promote FDI, the Government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important sectors, are open for 100% FDI under the automatic route. More than 90% of the FDI inflow is received under the automatic route.

Minister further noted that India has embarked on a series of reforms aimed at liberalizing its FDI policies, with the goal of stimulating economic growth and encouraging foreign capital inflows. In the recent past, reforms in the FDI Policy have been undertaken in sectors such as Defence, Insurance, Petroleum & Natural Gas, Telecom and Space. FDI in the Defence sector is allowed up to 74% through Automatic Route (from earlier 49%) for companies seeking new industrial licenses. Further, 100% FDI in the Telecom Sector is allowed under the Automatic Route. FDI sectoral cap in the insurance sector has been revised from 49% to 74% under the automatic route. The Union Budget 2025 also announced the further increase of FDI sectoral cap for the insurance sector from 74% to 100%. This enhanced limit will be available for those companies, which invest the entire premium in India.

Prasada further stated that to further strengthen a seamless business regulatory framework across the country and nudge states to promote healthy competition to attract investment including FDI, various initiatives are being undertaken. The Government of India released Business Reforms Action Plan (BRAP) 2024 rankings and Logistics Ease Across Different States (LEADS) 2024 report to communicate to potential investors examples of a positive business ecosystem as well as logistics performance undertaken by various States and UTs.