Telangana has well-established system for foreign direct investment (FDI) and provides various incentives to induce investment.
The measures taken by the Government are directed to open new sectors for foreign direct investment, increase the sectoral limit of existing sectors and simplifying other conditions of the FDI policy. FDI policy reforms are meant to provide ease of doing business and accelerate the pace of foreign investment in the State & Country.
Foreign direct investment inflows hit an all-time high of $60.1 billion in 2016-17, the government eased rules to lure global conglomerates to set up shop in sectors such as defence and railways.
In the last three years, The Government has eased 87 FDI rules across 21 sectors to accelerate economic growth and boost jobs.
FDI inflows were at $55.6 billion for the year ending March 2016, which was a record. In 2016-17, the FDI inflows were even higher at $60.08 billion.
Since 2014, the government opened up “conservative” sectors like rail infrastructure and defence. FDI reforms were also carried out in financial sector, medical devices and construction sectors.
FDI rules were radically overhauled across sectors such as broadcasting, retail trading and air transport. The Government amended legislation to hike the foreign investment cap to 49% in insurance and pension from the earlier 26%.
In addition, initiatives such as introduction of composite caps in the FDI policy and raising the FIPB approval limit were also undertaken to promote ease of doing business in the country.
For retail trading of food products, the government permitted 100% FDI with unqualified condition that such food products have to be manufactured or produced in India.