New Delhi : The government’s move to relax FDI norms in sectors, including civil aviation, single-brand retail, defence and pharma, will help attract big investments and boost job creation, India Inc said.
Terming the decision as ‘excellent’, Dhiraj Mathur, Partner – Aerospace and Defence, PwC said, “both sectors (aviation and defence) are capital intensive with long gestation periods. Defence is also extremely technology driven and OEMs invest huge sums of money generating technology and IP. The fact that there was no control permitted earlier was a major issue that was quoted for not investing in India.
That obstacle has now been removed and coupled with the major simplification in the DPP, OEMs should respond positively and proactively to these path breaking reforms”.
Other sectors in which FDI norms have been relaxed include e-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry. “Liberalisation of the FDI regulations reflects the government’s commitment to reforms and openness, and reassures investors that ease of doing business remains a high priority,” Chandrajit Banerjee CII Director General said. “Taken together, the FDI rules announced today will attract big new investments across key sectors such as food processing, defence production, pharmaceuticals and civil aviation, among others, thereby adding to growth and employment.”
2015 Kashmir Despatch