NEW DELHI, July 5 (Xinhua) -- India's federal finance minister Nirmala Sitharaman on Friday indicated her government was ready to relax the norms in Foreign Direct Investment (FDI) in sensitive areas like aviation, insurance as well as the media in its efforts to boost the economy.
"I propose to further consolidate the gains in order to make India (a) more attractive FDI destination. The government will examine suggestions of further opening up of FDI in aviation, media, AVGC (Animation, Visual effects, Gaming and Comics) and insurance sector in consultation with stakeholders," Sitharaman said.
The minister also said 100 percent FDI will be permitted for insurance intermediaries, and local sourcing norms will be eased for FDI in single brand retail sector.
The move is aimed at attracting more foreign investment.
According to Sitharaman, India's FDI inflows in 2018-19 grew by 6 percent to 64.37 billion U.S. dollars.
Foreign investment is crucial for India which is hoping to double its economy to 5 trillion U.S. dollars over the next five years, a goal that makes it necessary to register at least 8 percent growth.
The last time the government relaxed FDI norms in media was in November 2015.
The FDI limit in news channels and private FM radio was raised to 49 percent, up from 26 percent, and 100 percent foreign investment was allowed in entertainment channels.
Friday's budget was Sitharaman's maiden one and the first budget of the Narendra Modi government in the second tenure.
The minister said India will become a 3-trillion-U.S. dollar economy in the current fiscal year, and is aiming at becoming a 5-trillion-U.S. dollar economy in the next few years.
In the Economic Survey tabled in country's parliament on Thursday, India's gross domestic product growth was projected at 7 percent in financial year 2019-20.
