In a bid to attract higher foreign investments in the country, the government is mulling easing foreign direct investment (FDI) policy on construction, print media and retail sectors, which will provide investor friendly climate to foreign players and in turn boost economic growth & create jobs. In this regard the commerce and industry ministry may approach the Cabinet soon to get the final approval on these proposals.
In print media the government is considering to relax FDI norms in certain areas, currently government allows foreign investment in areas such as printing of newspapers and publishing of scientific magazines with certain conditions and FDI caps. In construction and development sector, proposal is to ease the policy, under which an Indian company could be allowed to bring FDI even for undeveloped plots in any project. Currently, 100 percent FDI is allowed in the construction sector subject to various conditions. The government is also mulling easing policy in single brand and multi-brand retail trading and there are consideration to allow 100 percent FDI in single brand retail sector through automatic route with certain conditions.
Foreign investments are considered crucial for economic development of the country and to attract maximum FDI into the country, the government has been relaxing the foreign investment norms in various sectors. Foreign investments will help improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the dollar and India needs around $1 trillion to overhaul its infrastructure sector such as ports, airports and highways to boost growth.