On June 20, 2016, the Indian government, in an effort to open up the Indian economy and bring in much-needed foreign capital, announced a radical liberalization of the foreign direct investment (FDI) rules by liberalizing restrictions on foreign investments into various sectors (please refer to the Appendix for a summary).

The key sectors which have been the subjects of this liberalization and where an increased level of FDI is anticipated are set out below.