87 businesses have undergone reforms.
The path breaking reform measures undertaken during the last financial year have resulted in India receiving US$60.08 billion in foreign direct investment during 2016-17.
It was US$55.6 billion for the previous year ended March 2016, up from US$45.15 billion and US$36.05 billion in the previous two fiscal years.
The Ministry of Commerce & Industry said the government has undertaken a number of reforms in different areas of economy in the past three years.
It said 21 sectors covering 87 areas of FDI policy have undergone reforms.
A new direction was given to FDI policy reforms in 2014 itself when conservative sectors like Rail Infrastructure and Defence were liberalized. This was accompanied by reforms in other sectors such as Medical Devices and Construction Development.
The momentum of positive business climate was further ignited with launch of Make in India initiative in September 2014.
With a view to provide ease of doing business, licensed and non-sensitive activities were placed under automatic route and investment caps were raised.
FDI policy provisions were radically overhauled across sectors such as Construction Development, Broadcasting, Retail Trading, Air Transport, Insurance and Pension among others.
A paradigm shift was made in the FDI policy on retail and other financial services sector.
For retail trading of food products, the Government permitted 100% FDI with unqualified condition that such food products have to be manufactured and/or produced in India.
The measure promotes domestic industry, restricts imports, creates local jobs and results in conserving valuable foreign exchange, said the Ministry.
In the Financial services sector, the Government promulgated that any financial sector activity which is regulated by any financial sector regulator will be eligible for 100% FDI under automatic route, and approval would be needed only for unregulated financial sector activities.
During the last financial year, FDI policy reforms were also undertaken in other sectors such as Defence, Airport Infrastructure, Broadcasting, Animal Husbandry and Retail Trading. Fii-news.com
