Come Fly With Us, India Tells Foreign Investors

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Definition of "medical devices" amended in the FDI Policy.

It has been felt that the country has potential to attract far more foreign investment which can be achieved by further liberalizing and simplifying the FDI regime. It received a $5.8 billion in bailout funds from the taxpayer, but still needs more capital to become profitable.

Opposing the disinvestment of Air India, Mahajan said the finances of national airline are in deep trouble, but allowing foreign investment is not the best of the solutions for ending its troubles. Foreign airlines are already allowed to own up to 49% of private airlines in India but were restricted from investing in the state-run carrier, which.

Modi is trying to lure foreign capital to revive economic growth that is seen expanding at the slowest pace since he came to power in 2014. The new rules are also meant to help struggling carrier Air India get out of the doldrums.

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Swadeshi Jagran Manch has said that easing the norms for FDI in SBRT would go against the best interest of the country.

This is the second time that the FDI policy has been changed by the current government. Accordingly, the Government has chose to introduce a number of amendments in the FDI Policy. FIIs/FPIs will also be allowed to invest in Power Exchanges through primary market. It is therefore, eligible for 100 per cent FDI under the automatic route.

Government's decision of allowing 100 % FDI for single brand retail has received criticism from the BJP's ideological mentor RSS.

"A cabinet meeting, chaired by Prime Minister Narendra Modi, gave investors the go-ahead to invest 100 per cent in single-brand retail and other sectors without government's approval, " Government Spokesman, Frank Noronha, said. The amendment is likely to benefit companies such as Swedish furniture maker Ikea, which is planning to set up stores across the country.

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Foreign direct investment into India rose 17 percent in the April-September period to $21 billion from a year ago, according to data provided by the commerce ministry.

The move should generate employment and give Indian consumers access to several global brands.

In a statement issued here on Thursday, CAIT National President BC Bhartia and Secretary General Praveen Khandelwal said that it will have vital bearing on livelihood of crores of small businesses in the country as the Government has taken the decision without considering its impact on India's existing retail trade. It remains an unfinished agenda for the government.

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