The Federation of Indian Chambers of Commerce and Industry (FICCI) on Monday welcomed the Centre's decision to open up 100 percent Foreign Direct Investment (FDI) into defence and civil aviation sectors, saying Prime Minister Narendra Modi-led government had translated words into action after having made a strong pitch to the global investors.
FICCI Secretary General, Dr. A. Didar Singh, said simplification in the policy framework governing investments in a range of sectors, including strategic sectors like defence and aviation, is a huge positive step for the economy.
"The Modi administration through these moves has once again highlighted that reforms is a continuous process in order to capitalise the potential India offers," he said in a statement issued by FICCI.
Dr. Didar Singh said there is no doubt that India is the most preferred investment destination in the world today, adding, "While the attraction of our market is known to all, there is now even more reason for global investors to commit themselves for making and doing business in India."
"Our government is translating words into action and after having made a strongest pitch ever to global investors, it if following up with a major overhaul of the FDI framework so that the interest generated is captured in the form of higher investment flows which are on a rise since the last two years". Dr. Didar Singh further added.
Today's decision will allow 100 percent FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.
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The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi.
This is the second major reform after the last radical changes announced in November last year.