March 23, 2022
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Open FDI automatic route expands investor access and policy reviews, facilitating sectoral reforms and increased foreign investment inflows.
The Government permits most sectors, except certain strategic areas, to receive 100% FDI under the automatic route, with the FDI policy subject to ongoing review and revisions after stakeholder consultations. Recent reforms have targeted sectors such as Insurance, Petroleum & Natural Gas and Telecom. FDI inflows are described as supporting domestic investment, industrial development, employment, technology transfer, export promotion and competitiveness, with major equity recipients including Services, Computer Software & Hardware, Telecommunications, Trading and Automobile industries.