Pre Diwali, the Government of India announced reforms liberalising the Foreign Direct investment (“FDI”) Policy in relation to 15 (fifteen) sectors (covered in our previous Newsletter). The Ministry of Commerce and Industry, Department of Industrial Policy and Promotion (“DIPP”) formally introduced the reforms into the FDI Policy by issuing a Press Note No. 12 (2015 Series) dated November 24, 2015 (“Press Note 12”). The terms “manufacture”, “control” with respect to an Limited Liability Partnership (“LLP”), “owned” with respect to an LLP, “under controlled conditions” in respect of agriculture and animal husbandry and “real estate business” and “transfer” in respect of construction development, have been defined in the FDI Policy and various provisions with respect to the liberalisations of various sectors have been clarified.
The reforms introduced should definitely encourage foreign investors to invest in India and give Indian business houses in various sectors to now explore opportunities to raise foreign investment.