ON 20 JUNE, the Union Government took another step in liberalising the Foreign Direct Investment (FDI) rules that prevail in the country. While the overall pace appears to be incremental, some of the changes effected have been in sectors as diverse as food products, defence, pharmaceuticals, civil aviation and single-brand retail, cumulatively making India one of the more open countries when it comes to welcoming investment from overseas.
There is much to be positive about the moves that were announced on Monday. With the latest round of FDI liberalisation, there is now just a small negative list left; otherwise, most areas are open for investment under the automatic route or by Government approval. This list includes investment in atomic energy, railway operations, gambling and betting, lottery businesses, chit funds, cigarettes…
