Date
17 January 2017
Prime Minister Narendra Modi said the move will provide a major impetus to job creation and infrastructure. Photo: Bloomberg
Prime Minister Narendra Modi said the move will provide a major impetus to job creation and infrastructure. Photo: Bloomberg

India eases foreign investment curbs

India has eased restrictions on foreign direct investment in retail, defense, civil aviation and several other sectors, the Wall Street Journal reports.

“The move would provide a major impetus to job creation and infrastructure,” the newspaper quoted Prime Minister Narendra Modi as saying in a statement.

As part of the changes, foreign-owned single-brand retailers will have a three-year respite from a requirement that they buy at least 30 percent of their manufacturing materials from domestic suppliers, the report said.

Foreign investors will also be allowed to own up to 100 percent of domestic airlines, up from the current limit of 49 percent.

Foreign direct investment in mobile television, cable networks and direct-to-home services will be raised to 100 percent from 74 percent.

The changes are likely to benefit companies that see India as the next growth market, the Journal said.

Apple, for example, plans to open its own stores in India. Currently it sells its devices through Indian-owned distributors and retailers.

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