India opens up to foreign investment

RBI Governor Raghuram Rajan at a news conference after their bi-monthly monetary policy review in Mumbai, India, on June 7.
RBI Governor Raghuram Rajan at a news conference after their bi-monthly monetary policy review in Mumbai, India, on June 7. PHOTO: REUTERS

India has announced sweeping reforms to rules on foreign direct investment, opening up its defence and civil aviation sectors to complete outside ownership.

It was also opening up further to foreign investors other sectors like food retail, private security firms and pharmaceutical production. The announcement comes two days after central bank governor Raghuram Rajan said he would not seek another term, raising concern on whether reforms he set in motion will stall.

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A version of this article appeared in the print edition of The Straits Times on June 21, 2016, with the headline 'India opens up to foreign investment'. Print Edition | Subscribe