Share markets in India are presently trading marginally lower. Sectoral indices are trading on a mixed note with stocks in the capital goods sector and realty sector witnessing maximum selling pressure. Healthcare stocks are trading in the green.
The BSE Sensex is trading down 93 points (down 0.3%) and the NSE Nifty is trading down by 29 points (down 0.3%). The BSE Mid Cap index is trading down by 0.2%, while the BSE Small Cap index is trading down by 0.7%. The rupee is trading at 64.46 to the US$.
As per a leading financial daily, Prime Minister Narendra Modi is going to hold a high-profile meeting to review India’s foreign direct investment (FDI) policy today. The meeting is aimed at boosting fund inflow and job creation in India and also discuss further easing of restrictions.
Earlier, last month, the government had decided to clear all FDI proposals requiring approval. It stated that proposals will be approved within a maximum of 10 weeks after the receipt of an application as per the standard operation procedure which replaces Foreign Investment Promotion Board (FIPB), which is abolished by the government.
The above measures by the government are aimed at improving investment climate in India.
Foreign Direct Investments (FDI) plays an important role in the economic development of a country. It is a source of long term capital that helps build critical infrastructures in the economy. It also aids in technology knowledge transfers, fosters innovation and helps raise productivity too. In short, having a steady flow of FDI inflows would help India to achieve necessary investments that will help accelerate economic growth and development.
Since 2014, the Modi led government has laid a great emphasis on welcoming global best practices to be employed in India.
The government began this with the launch of ‘Make in India’ initiative in September 2014. Further, the government has carried out FDI reforms in sectors like rail infrastructure, defence and in financial sector, medical devices and construction sectors etc.
