July 29, 2022
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FDI policy liberalisation expands automatic-route manufacturing investment and RBI measures bolster forex inflows, increasing foreign investment confidence.
FDI policy permits up to 100% foreign investment under the automatic route in most sectors and treats manufacturing as eligible whether by self-manufacturing or contract manufacturing, allowing sale via wholesale, retail and e-commerce without approval. Complementary monetary and regulatory measures-including CRR/SLR exemptions for incremental NRE/FCNR(B) deposits, temporary deposit interest flexibility, inclusion of specified G-Secs under a fully accessible route for investors, temporary ECB limit increases and broader permitted end-uses for foreign currency borrowings-have been implemented to enhance forex inflows and support higher FDI.