India now most open economy in world for FDI, says PM Modi

Prime Minister Narendra Modi on Monday hailed relaxation of rules in Foreign Direct Investment (FDI), saying they would make India most open economy in the world.

"Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI," Modi said in a tweet.

"Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India," Modi said in another tweet.

Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI.

— PMO India (@PMOIndia) June 20, 2016

It has now been decided to permit 100% FDI under government approval route for trading, including through e-commerce (1/2)

— PMO India (@PMOIndia) June 20, 2016

Centre has radically liberalized the FDI regime, with the objective of providing major impetus to employment and job creation in India.

— PMO India (@PMOIndia) June 20, 2016

The government today relaxed norms in several sectors including civil aviation, single-brand retail, defence and pharma by permitting more investments under automatic route.

E-commerce in food products, broadcasting carriage services, private security agencies and animal husbandry are among other sectors.

"Now most of the sectors would be under automatic approval route, except a small negative list. With these changes, India is now the most open economy in the world for FDI," said an official statement.

This is the second major reform in the FDI space.

(With agency inputs)