The Ministry Commerce and Industry has released this year’s edition of Consolidated FDI policy. The FDI consolidated policy incorporates all the changes made by the government over the past year. The DIPP (Department of Industrial Policy and Promotion) is a structural body which deals with all FDI related matters. DIPP compiles all the FDI decisions taken by the government related to foreign investment in one accumulative data to facilitate the investors to understand the investment regime of India in a better manner.
By releasing the updated policy every year, DIPP saves the investors from the hassle of going through all the RBI issued notes one by one to understand the policy. The main aim of the document is to attract foreign investment by creating investment friendly climate to boost economic growth and create jobs.
India needs around $1 trillion Foreign Investment, which is crucial to enhance its infrastructure sector such as airports, ports, and highways to boost the growth rate of country’s economy.
Last year, the government liberalized FDI policy in over a dozen of sectors including defence, news broadcasting, private security agencies, civil aviation, construction, and development.
Foreign Investment can also help the country to improve its balance of payments which could result in the appreciation of Indian currency against other global currencies, especially US dollar.