NEW DELHI
A day after Reserve Bank of India Governor Raghuram Rajan's decision not to continue in the slot after September, the National Democratic Alliance (NDA) government, in a major reform push, eased norms for Foreign Direct Investment and allowed 100 per cent FDI in five more sectors, including defence, pharmaceuticals, civil aviation, food product manufacturing and animal husbandry.
The government has also brought more sectors under the automatic list and eased conditionalities for foreign investment.
According to official sources, the announcement makes India the most open economy of the world for FDI. The country, according to them, is rated as number one for the FDI destination by a number of rating agencies.
Monday's announcement came amid growing buzz about Raghuram Rajan not seeking any extension as the RBI governor.
This is the biggest push since November, when the government had liberalised FDI rules and norms for 15 sectors.
''The Union government has radically liberalised the FDI regime today, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting, chaired by Prime Minister Narendra Modi today,'' said an official statement.
Commerce and Industry Minister Nirmala Sitharaman clarified that government has allowed 100 per cent FDI in various sectors to bring in more investment and create jobs and employment.
Briefing reporters after the announcement here, she said it has nothing to do with the help to foreign airlines. There is no conflict between the Civil Aviation Policy announced recently and the approval of 100 per cent FDI in civil aviation, she added.
''In fact, this will help a lot in civil aviation policy as the policy is aimed at achieving various goals. Huge investments are required in this sector," the