Economic Affairs Secretary Shaktikanta Das on Monday welcomed the government's move to approve 100 percent FDI in aviation, defence and e-commerce sectors, saying this initiative will play as a big game changer and in the process boost employment.
"For civil aviation, this will be a very big game changer. A 100 percent FDI can come in. So, it will definitely assist the domestic aviation companies to strengthen themselves, to expand their network and also in the process create jobs for our youngsters in various capacities for repairs or as pilots or flight crew," he told the media.
Das said the FDI liberalisation was a follow up to the decision taken earlier.
"Last November, a whole lot of reforms were announced and in the budget also specifically in the context of stock exchanges or in the context of NBFC, it was said that wherever there is a regulator in position there is no need for those clearances to come to FIPB," he said.
"Basically the idea is to go for process simplification. Now, today's decisions are also a continuation of the same approach," he added.
The present FDI regime permits 49 percent FDI participation in the equity of a company under automatic route. The foreign investment beyond 49 percent has now been permitted through government approval route, in cases resulting in access to modern technology in the country or for other reasons to be recorded.
Monday'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.
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.
