Here's why PM Modi thinks India is now the most open economy in the world for FDI

With the Centre liberalising the economy radically by permitting 100% Foreign Direct Investment (FDI) for almost every sector, including defence, Prime Minister Narendra Modi said the initiative makes India the most open economy in the world for FDI.

"Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI. Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India," the Prime Minister's Office said.

The PMO in a series of tweet said that India has been rated as Number 1 FDI Investment Destination by several International Agencies.

"This is the 2nd major reform after the last radical changes announced in November 2015. Now most of the sectors will be under automatic approval route," the PMO said.

"Reform measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16 as against US$ 36.04 billion during the financial year 2013-14," it added.

The PMO also noted that now it has been decided to permit 100% FDI under government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

The key changes include allowing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India and permitting up to 100% FDI in the defence sector.

The other sectors that have benefitted include broadcasting, pharmaceuticals, civil aviation, single brand retail, among others.

The ruling BJP-led NDA government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, among others in last two years.

The FDI inflow into the country has increased at $55.46 billion in 2015-16 as against $36.04 billion during 2013-14.

This is the highest ever FDI inflow for a particular financial year.

-ANI