USIBC (US-India Business Council) welcomed India’s decision to further increase FDI(Foreign Direct Investment) limits as a boost to US-India bilateral trade.
The FDI reform measures were decided at a high level meeting chaired by Prime Minister Modi on Monday. The reforms will allow up to 100 percent inflows in civil aviation, defense, food processing and pharmaceuticals sectors etc.
Chairman of USIBC, Mukesh Aghi,applauded the FDI increases calling it a fillipto Indo-US trade. The liberalization of FDI in Defense, Broadcasting services, Civil Aviation and Pharmaceuticals sectors following PM Modi’s US visit has further buoyed investor sentiment towards India.
Central Government also approved FDI in private security agencies and brownfield pharma projects up to 74%. Increased FDI limit in aviation specially, will help in the growth of tourism fueling economic development, said Aghi.
India is the fastest growing aviation market recording 21% growth in domestic sectors in 2015-2016. The decision to increase the limit of FDI at this time is significant. In spite of the downturn in Global economy, India continues to successfully attract Foreign Direct Investments. Aghi mentioned that measures taken by the Government to liberalize are contributing to accelerated economic development of India.
The Government is taking care that tedious procedures and bureaucracy will not be a hindrance to foreign investors. For a start American companies are investing 45 billion dollars. With these newly announced reforms, FDIs, technology transfers, and jobs are likely to increase substantially, said the USIBC chairperson.
USIBC plays a critical role in India-US bilateral trade.