By: Himanshu Gulati
Norms were eased regarding FDI in various important sectors like defence, pharmaceuticals, aviation,trading (including e-commerce) with FDI upto 100% allowed in most sectors.
In February 2019, the Government of India released the Draft National e-Commerce Policy which encourages FDI in the marketplace model of e-commerce.
In September 2018, the Government of India released the National Digital Communications Policy, 2018 which envisages increasing FDI inflows in the telecommunications sector.
India is among a preferred destination for FDI as domestic consumption rate remains strong, the RBI Annual report shows. According to the UNCTAD’s Investment Trends Monitor (2018), India was the 10th largest recipient of global FDI in 2017.
There is no direct way to measure asset creation & employment through FDI. Though India has been among the top 10 destination for FDI,
Unemployment is a serious issue in the country. Unemployment rate has risen to 7.2% in 2018. A total number of 1.35 lakh jobs in 2015 & 2.31 lakh jobs in 2016 have been created in 8 labour-intensive manufacturing sectors as compared to 4.21 lakh jobs in 2014. According to the report published by Centre for Monitoring Indian Economy, an independent think tank, nearly 1.1 crore jobs were lost in 2018 alone and the unemployment is at highest point since 1973, according to National Sample Survey Organisation (NSSO) report.