Commerce Ministry mulls further FDI regime easing, more tax benefits for startups: Official

New Delhi: The Commerce and Industry Ministry is working on a 100-day reform agenda, which may include proposals such as further liberalising the FDI regime, easing investments from neighbouring countries, and more tax benefits for startups, an official said.

The proposals may also include easing certain environmental norms for the leather and footwear industry, expediting setting up of e-commerce hubs to boost exports, fast-tracking setting up of BharatTradeNet and integrating lab testing and certification from one platform, the official said.

Another official said these steps would help boost India’s exports in the wake of high tariffs imposed by the US on Indian goods.

At present, there is a 25 per cent additional import duty on Indian goods entering America. From August 27, another 25 per cent will kick in as a penalty on India for buying crude oil and military equipment from Russia.

In Lokmat global economic convention, Commerce and Industry Minister Piyush Goyal said in the next 100 days, the government will follow the clarion call given by Prime Minister Narendra Modi on August 15 to take India forward on a fast-tracked pathway.

These proposals will help boost the country’s exports and FDI.

During April-July 2025-26, exports increased 3.07 per cent to $149.2 billion, while imports rose 5.36 per cent to $244.01 billion. The trade deficit during the first four months of 2025-26 was $94.81 billion.

FDI into India rose 13 per cent to $50 billion in 2024-25.

In July 2024, a pre-Budget Economic Survey made a strong case for seeking foreign direct investments from China to boost local manufacturing and tap the export market.

At present, the bulk of FDI coming into India falls under the automatic approval route, however, FDI from countries sharing land borders with India needs mandatory government approval in any sector.

FDI in the country is allowed through the automatic route in most of the sectors, while in areas such as defence, media, and pharmaceuticals, government approval is required for foreign investors.

However, in some sensitive sectors, overseas investments are also banned.