FDI POLICY CHANGES : "With these changes, India is now the most open economy in the world for FDI"

Changes in FDI Policy

Sector		Before	Now
Trading in Food products manufactured or produced in India			100% FDI through Govt. approval route
Defence		100% FDI allowed -      49% FDI under automatic route -      beyond 49% through Govt. approval route wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country	The condition of access to ‘state-of-art’ technology in the country is removed
Broadcasting		100% FDI allowed -      49% FDI under automatic route -      beyond 49% through Govt. approval route	100% FDI allowed under automatic route
Brownfield Pharmaceuticals		100% FDI allowed through Govt. approval route	100% FDI allowed -      74% FDI under automatic route -      beyond 74% through Govt. approval route
Civil Aviation	Brownfield Airport Projects	100% FDI allowed -      74% FDI under automatic route -      beyond 74% through Govt. approval route	100% FDI allowed under automatic route
	Foreign Investments in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service	49% FDI allowed under automatic route	100% FDI allowed -      49% FDI under automatic route -      beyond 49% through Govt. approval route
Private Security Agencies		49% FDI allowed through Govt. approval route	74% FDI allowed -      49% FDI under automatic route -      beyond 49% up to 74% FDI through Govt. approval route
Animal Husbandry		100% FDI under automatic route under controlled conditions	The requirement of controlled conditions has been removed

Other changes are

• Relaxation of local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
• In cases where FIPB approval or license/permission by the concerned Ministry/Regulator has already been granted, approval of Reserve Bank of India or separate security clearance would not be required for establishment of branch office, liaison office or project office or any other place of business in India if the principal business of the applicant is Defence, Telecom, Private Security or Information and Broadcasting