The government is likely to relax foreign direct investment (FDI) rules for sectors like construction, gaming, visual effects, among others, to create jobs in the country.
The Union Budget, to be presented on February 1, is likely to allow 100 per cent FDI in sectors like animation, visual effects, gaming and comics, Bloomberg reported.
Besides, a proposal to allow limited liability partnerships (LLP) for investment in construction of hospitals, townships, roads and hotels is also under consideration. Foreign investors currently have to meet certain conditions, including a three-year lock-in period before exiting, for investing in construction development sector. Permitting LLP in the sector will make it easier to get foreign investments.
The government is likely to focus on boosting consumption and getting more investments in the economy, ravaged by the COVID-19 pandemic, in the Budget. India's GDP contracted by 23.9 per cent in April-June quarter and 7.5 per cent in July-September quarter.