Olivier and Mann – To regain its rank as one of the world’s leading economy in terms of growth, India is now thinking of loosening its foreign investment limits in a bid to lure foreign companies as from April 1 this year.
The Modi administration has decided to do away with the Foreign Investment Promotion Board which is widely seen as slowing down ventures and business projects. India’s goal is to provide foreign businesses with easier methods of gaining approvals and ministries to immediately clear long held up applications.
The goal is to make the process easier for foreign investments and removing investment caps is one of the areas being considered by the Indian government. Economic Affairs Secretary Shaktikanta Das declined to discuss specific industries where investment caps will be reduced.
With China and India as the world’s most populated countries, coming together more would help both to create more jobs and drive growth in sales.
India and China have both been promoting a more global environment at a time when the U.S. and the United Kingdom are being seen to take a more nationalist economic stance.
Foreign direct investments in India from April to September climbed 31% from a year earlier to $21.7 billion but still way behind China’s almost $118 billion in 2016.
The Modi administration is working on attracting foreign investment to fuel financial growth which is expected to decelerate to 7.1% in the year ending March 31 after reaching almost 8% last year.
The country’s expansion program hit a snag following Modi’s directive to demonetise the country’s highest value banknotes.
Foreign businesses in India are restricted by outside investor regulations in more than a dozen sectors, from finance to defence.
Apple is set to start its iPhones production in India by the start of May following a lengthy business discussion specifically on the easing of policy that forces its exclusive retailers to procure 30% of its product parts in India.