100 percent FDI is allowed through automatic route in almost all sectors: Piyush Goyal
Foreign direct investments (FDIs) into India have been continuously growing as the country has one of the most facilitative policies to attract overseas investors, said Piyush Goyal, Minister Commerce and Industry on Tuesday, December 15. While addressing the inaugural session of CII’s Partnership Summit 2020 through virtual means today, Piyush Goyal welcomed foreign investors, assuring them assistance, partnership, and involvement for business opportunities in the country. The Minister said that India has been systematically opening up to global investors new sectors of the economy and encouraging businesses through strategic relationships with different investment partners, strengthening the economic plans for the future.
“During the first nine months of this year, at the peak of COVID-19 pandemic, our FDI has grown. We have one of the most facilitative FDI policies in the world. During the April-September period, FDI inflows are at $40 billion, which has been higher than last year by about 13 per cent,” said Piyush Goyal.
”Last year, we announced one of the most attractive tax rates available anywhere in the world at 22 per cent tax for businesses in India and 15 per cent tax for new manufacturing facilities set up after October 2019,” he added.
FDI flows in India have been continuously growing.
Even during the first 9 months of this year, at the peak of pandemic, FDI has grown.
During April-September period, FDI inflows were at about $40 billion, which is higher than last year by about 13%
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— Piyush Goyal (@PiyushGoyal) December 15, 2020
The Minister explained that several new schemes have been introduced including Production-Linked Incentive Scheme to attract industries to the country. “We have investment promotion cells in all the ministries. Central government and states are working together to attract and promote investments even before the onset of the pandemic, India was rapidly announcing a slew of reform measures aimed at improving the economy and productivity levels in the economy,” he said.
He added that the country is introducing conducive reforms and facilitation measures to encourage greater global involvement in the V-shaped recovery. Goyal also said that 100 percent FDI is allowed through automatic route in almost all sectors.
For certain sectors such as media, telecom, pharmaceuticals and insurance, the approval from the government is required for foreign investors. There are nine sectors where FDI is prohibited, namely, lottery, chit funds, gambling and betting, real estate business, Nidhi company, and manufacturing of cheroots, cigars, cigarillos as well as cigarettes using tobacco.