India opens to foreign investors
Arun Jaitley, the Finance Minister has stated that the government will open up the closely controlled sectors of defence and insurance in front of foreign direct investment (FDI). By reducing the minimum built-up area requirement from 50,000 sq m to 20,000 sq m and also cutting the capital requirements of $10 million by half, the Finance Minister has eased up FDI for construction. This proposal is likely to benefit the Indian job sector.
This newly proposed plan will not only provide a fillip to the smart cities development but also help several Indian developers who have been strapped for cash. The proposal that Thursday’s budget sent not only made the development for Indian railways (upgrading to better technology) open to foreign investment but also gave signal to several overseas investors that India is open for business.
However, the opening for foreign direct investment in the field of e-commerce, which was being backed by the bureaucratic class, has not found favour with the other ministers. While airing clarity to the purpose of FDI, the finance minister, Arun Jaitley stated that FDI is an added resource which would help us in promoting domestic manufacture and would also create job purposes.
Source: The Times of India
