India is considering relaxing foreign investment rules for sectors ranging from construction to animation to attract the foreign capital needed to create jobs in an economy devastated by the pandemic, people familiar with the matter said.
People who asked not to be identified, citing the rules, said a proposal to allow limited liability companies to invest in building municipalities, highways, hotels, and hospitals is being discussed. One person said a plan to allow 100% foreign direct investment in the animation, visual effects, games, and comics sector could also find mention in the government budget that will be introduced on February 1.
Allowing LLPs would open a new avenue for investment at a time when Prime Minister Narendra Modi’s government struggles to revive the economy from its worst annual downturn ever and create jobs in a country still losing jobs after months of induced lockdown. Epidemic. The government estimates that India will require an investment of $ 777 billion in development infrastructure by 2022.
A finance ministry spokesman did not respond to a call made on his cell phone outside of business hours on Tuesday.
Government data showed that the construction sector received $ 25.7 billion in FDI inflows between April 2000 and September 2020. Relaxing the rules is also likely to help the Modi government move closer to its goal of creating affordable housing for all in urban areas by 2022 and building 100 smart cities.
Currently, foreign investors must meet certain conditions to invest in the construction development sector, such as a three-year lockdown period before exit. People said allowing LLP companies to facilitate the sector’s access to foreign investment.
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