India eased foreign-direct investment rules on Monday, bolstering sentiment after a weekend announcement by Reserve Bank of India Governor Raghuram Rajan that he’ll leave the central bank dented confidence.

The government trumpeted the changes in a statement, saying India is "now the most open economy in the world for FDI" and that investment applications in most sectors can get automatic approval rather than requiring a green light from the administration. The last major changes in the regulations came in November 2015, according to the statement.

Click here for more on the policy relaxation today

The adjustments now allow:

  • 100 percent FDI via government approval in the trading of food products made or produced in India, including through the e-commerce route.

  • More than 49 percent FDI in the defense sector via government approval, even if that investment doesn’t provide state-of-the-art technology, which was the earlier requirement.

  • Automatic approval for 100 percent FDI in broadcasting activities such as cable networks and mobile television.

  • Automatic approval for 74 percent FDI in existing pharmaceutical companies.

  • Automatic approval for 100 percent FDI in existing airports.

  • 100 percent foreign ownership of local airlines, with government permission required for investment beyond 49 percent; however, overseas carriers can still only hold 49 percent of a domestic carrier.

  • Automatic approval for 49 percent FDI in private security agencies, and up to 74 percent with government approval.

  • A relaxation of local sourcing requirements for companies, such as Apple Inc., seeking to sell a single brand in India: they’ll get a three-year grace period, while those that are selling cutting-edge products can get a relaxed sourcing regime for another five years.
Before it's here, it's on the Bloomberg Terminal. LEARN MORE