The Indian government announced on June 20 that it will launch comprehensive foreign investment reform measures, opening up most of the manufacturing and service industries, in order to promote economic openness and to create jobs.
“India is on the fast track of economic liberalization” India’s Business Standard newspaper reported on June 20 that this time’s reforms will fully open areas like civil aviation, defense, medical, insurance, commerce, animal husbandry, communications and broadcast to foreign investment, cancelling all or part of the technical standards regarding investment projects as well as the requirement that of foreign brands producing in India must use local design for production. It is worth noting that, as far as retail giants like IKEA and Apple are concerned, India relaxing restrictions on foreign investment in the retail sector means that the door of Indian market is finally opened to them.
In addition, the Indian government has allowed foreign companies to hold a maximum of 74% share in brownfield pharmaceutical projects without the prior approval of the government, also allowing foreign companies to hold 100% share in greenfield pharmaceutical companies.
The Government of India issued a statement on June 20 saying, “After these reforms, India is now the world’s most open countries to foreign investment.” India’s Minister for Commerce and Industry, Sharma (erroneous) said, the goal of foreign investment coming to India’s is clear— it is to serve the “Make in India”, “focus is on job creation, and to ensure that India becomes a manufacturing center.”