After government on Monday relaxed Foreign Direct Investment (FDI) norms in various sectors including civil aviation, single-brand retail, defense and pharma by permitting more investments under automatic route, Prime Minister Narendra Modi said that Asia’s third largest economy is most open to FDI in the world.

PM Modi said in a series of tweets,

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

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

This is 2nd major reform after the last radical changes announced in November 2015. (1/2)

— PMO India (@PMOIndia) June 20, 2016

Now most of the sectors would be under automatic approval route. (2/2) #TransformingIndia

— PMO India (@PMOIndia) June 20, 2016

Reform measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16. (1/2)

— PMO India (@PMOIndia) June 20, 2016

As against US$ 36.04 billion during the financial year 2013-14. (2/2)

— PMO India (@PMOIndia) June 20, 2016

India has been rated as Number 1 FDI Investment Destination by several International Agencies. #TransformingIndia

— PMO India (@PMOIndia) June 20, 2016

Other sectors which has been included in FDI along with civil aviation, single-brand retail, defense and pharma are e-commerce in food products broadcasting carriage services, private security agencies and animal husbandry.

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

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

...in respect of food products manufactured or produced in India. (2/2) #TransformingIndia

— PMO India (@PMOIndia) June 20, 2016

The liberalization occurred under government’s objective of “providing major impetus to employment and job creation in India”.

The decision has been taken at a meeting on today (June 20) chaired by Prime Minister Narendra Modi.

By Prajakt K.