The country has received 90 percent of foreign direct investment under the automatic route as of now. This was stated by Minister of State for Commerce and Industry Jatin Prasada in a written reply in the Lok Sabha today. He said a transparent, predictable, and easily comprehensible policy framework is in place for foreign direct investment. He said reforms in the FDI policy have been undertaken in sectors including defence, insurance, petroleum and natural gas, telecom, and space.
Mr. Prasada said FDI in the defence sector is allowed up to 74 percent through the automatic route for companies seeking new industrial licenses, which was only 49 percent earlier. He said it was announced in the Union Budget this year to increase the FDI ceiling for the insurance sector from 75 percent to 100 percent. The minister said that this enhanced limit will be available for those companies that invest the entire premium in India.
