The new government in India is gearing up to introduce more relaxations in foreign direct investment (FDI) and implement ‘quick reforms’ to enhance the country’s business-friendly image, a senior official revealed on Saturday. Rajesh Kumar Singh, the secretary in the department for promotion of industry and internal trade (DPIIT), made these announcements at the CII annual business summit in Delhi.
Singh highlighted the possibility of further liberalizing FDI in areas with potential, emphasizing that India’s FDI regime is already one of the most liberal in the world. The government is also focusing on implementing quick reforms ahead of the World Bank’s Business Ready Report survey, which will assess India’s overall business performance starting in September.
In addition to FDI and quick reforms, the government is considering lowering import duties and addressing issues like inverted duty structure and taxation distortions. Singh stressed the importance of correcting these inversions to enhance the competitiveness of India’s manufacturing sector.
Furthermore, Singh mentioned that India will be more open to free trade agreements (FTAs) in the future, and industries should prepare for lower duties in the long run. He also highlighted the success of the production linked incentive (PLI) scheme, which has attracted significant investments, generated sales and exports, and created numerous direct jobs.
The recent liberalization of FDI norms in the space sector, allowing up to 100% foreign ownership, demonstrates the government’s commitment to attracting foreign investment and boosting economic growth. With these upcoming reforms and relaxations, India aims to strengthen its position as an attractive destination for business and investment.