To promote Foreign Direct Investment (FDI), the Government has put in place an investor-friendly and enabling policy, wherein many sectors are open for 100% FDI under the Automatic route. The intent is to make the FDI climate more investor friendly and remove the policy bottlenecks that have been hindering investment inflows into the country. FDI policy reforms carried out by Government have resulted in increased FDI inflows. The country registered its highest ever FDI Inflow of US $74.39 billion (provisional figure) during the last financial year 2019-20

The policy on FDI is reviewed on an ongoing basis, to ensure that India remains an attractive and investor friendly destination. Changes are made in the policy after rounds of intensive consultations with all stakeholders including apex industry chambers, associations, representatives of industries/groups and other organizations and taking into consideration their views/comments and suggestions.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri SomParkash, in a written reply in the Lok Sabha today.

Foreign Direct Investment policy expanded through automatic route to attract investment, with ongoing reviews and stakeholder consultations. Foreign Direct Investment policy emphasizes an investor friendly framework with numerous sectors permitted for 100% FDI under the Automatic route, aimed at removing policy bottlenecks and facilitating inflows; reforms are credited with increasing receipts and the policy is subject to continuous review with changes made after stakeholder consultations.