India to ease investment rules to catch up to China

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'The government will examine suggestions of further opening up FDI in aviation, media, and, insurance sectors in consultation with stakeholders.'

In the first budget since Prime Minister Narendra Modi won a landslide in May, Finance Minister Nirmala Sitharaman said she wanted to boost foreign direct investment in several sectors.[NEW DELHI] India's newly re-elected government promised Friday an easing of foreign investment rules and more infrastructure spending in an effort to boost flagging growth rates and create jobs.

"The government will examine suggestions of further opening up FDI in aviation, media, and, insurance sectors in consultation with stakeholders," said Ms Sitharaman, India's first female finance minister.Ms Sitharaman, 59, also said India's public sector banks would be injected with US$10.2 billion in additional capital to tackle bad loans.

"It is high time India gets fully integrated into the global value chain of production of goods and services but also becomes part of the global financial system to mobilise global savings," Ms Sitharaman added.

 

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