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

New Delhi, Aug 18 (PTI) 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.

The government is embarking on the next 100-day agenda of transformation to take India on a fast track to become a developed nation.

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 foreign direct investments (FDI).

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

FDI into India rose 13 per cent to USD 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.

Countries that share land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.

Prime Minister Narendra Modi on August 15 announced a 10-year project to develop an indigenous defence shield to protect India's vital military and civilian installations.

In his Independence Day address from the ramparts of the Red Fort here, Modi also hinted at New Delhi's resolve to reduce dependence on foreign technologies for military platforms as he called for developing jet engines within the country for India's fighter aircraft.

The government is also taking a number of steps to promote the startup ecosystem in the country. It provides a number of incentives to these budding entrepreneurs such as income tax benefits.

The commerce ministry's arm DGFT is working on steps to promote exports through e-commerce medium as huge export opportunities are there in the sector. PTI RR CS TRB