FDI reforms to boost investment in India: USIBC

Washington: The US-India Business Council (USIBC) on Thursday said the liberalisation of India's FDI policy in over a dozen sectors will further improve ease of doing business and boost investments in the country.

Putting more FDI proposals through the automatic route is a clear signal that the government is living up to the mandate of minimum government and maximum governance, USIBC President Mukesh Aghi said in a statement.

Applauding India's latest reforms, USIBC said the move would "enable the ease of doing business in the country" and "will propel more investment and innovation".

"If the government continues on the current trajectory of bold reforms, then India will easily surpass the USD 41billion in FDI from the US companies," Aghi said.

He also said that relaxing the sourcing norms for single brand retailers who sell cutting edge technology products will clear many of the challenges that high-tech companies have had when it comes to taking advantage of the 100 per cent opening of the sector.

The council is keen on further reforms in these sectors and additional liberalisation that will aid the growth of bilateral trade.

FDI in e-commerce still remains restricted; Aghi said adding the USIBC will continue to urge the Department of Industrial Policy and Promotion (DIPP) to allow at least 51 per cent foreign investment in e-commerce.

Unveiling sweeping liberalisation of foreign investment norms, the government on November 10 opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms.