100-day reform agenda: Central government will liberalise FDI regime, foreign investment will become easier

The Ministry of Commerce and Industry is working on a 100-day reform agenda aimed at easing the foreign direct investment (FDI) policy and making it simpler for investments from neighboring countries. The agenda also plans to increase tax incentives for startups. An official from the ministry, speaking on Monday, mentioned a proposal to relax environmental standards for the leather and shoe industry, accelerate the development of e-commerce centers to boost exports, expedite tracking through India TradeNet, and offer laboratory testing and certification services on a unified platform.

Another official added that these measures could help boost India’s exports amid high US tariffs on Indian goods. Commerce and Industry Minister Piyush Goyal stated at a media event on Monday that the government is developing a 100-day transformation plan to rapidly advance India toward becoming a developed nation.

This plan includes fulfilling promises made by Prime Minister Narendra Modi on Independence Day. Goyal emphasized that no force can stop India from achieving developed nation status by 2047. India is emerging as the world's most attractive consumer market and a leading destination for investment.

The economic survey released in July 2024 before the budget highlighted the goal of increasing FDI from China to enhance local manufacturing and tap into export markets. Currently, most FDI in India is approved automatically, but FDI from countries sharing land borders with India—namely China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan—requires mandatory government approval in any sector. Approvals are needed for foreign investments in sectors like defense, media, and pharmaceuticals. Additionally, foreign investment is restricted in some sensitive sectors.