The Government of India has eased Foreign Direct Investment (FDI) norms in pharma, aviation and defence sectors at a high-level meeting chaired by the Prime Minister Mr Narendra Modi, earlier today.

Under the new norms, 74% FDI would be allowed in the pharmaceutical sector under the automatic route. This would mean that investors will not need government's approval to invest up to 74% in existing companies. Under the present scenario, FDI in the pharma sector is permitted up to 100% only in new projects.

The Government has also allowed 100% FDI in scheduled airlines. Under the current regime which had been implemented in 2012, only the foreign airlines were allowed to own up to 49% stake in an Indian airline.

Additionally, in the defence sector as well, which has been seen as a crucial sector by the Government to open for FDI earlier, under the new norms, foreign companies can now own 100% equity.

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