BENGALURU: The government launched a second wave of FDI reforms which lets a 100 percent inflow in civil aviation and food processing sectors while slackening norms in defense and pharmaceuticals. These decisions are seemingly targeted at counteracting fallout of Raghuram Rajan's verdict to exit RBI.

First reported by CNBC-TV18, the news was announced more than hour before the formal announcement by the government.

A substantial alteration in local sourcing policy for single-brand retail trading might let US-based Apple Inc to open stores under the mentioned reforms launched by the government which also encompasses broadcasting carriage services, private security agencies and animal husbandry.

The foremost reform measures were decided at a high-level meeting chaired by Prime Minister Narendra Modi. The Prime Minister's Office (PMO) alleged the decisions will make "the country most open economy in the world for FDI", but skeptics and critics claimed it as a "panic" reaction to Rajan's decision on to exit RBI and go back to academia after September 4.

The stock market responded in a positive manner to the news of FDI reforms as they recuperated from talking-up by significant market men that attended to counter Rexit (Rajan's exit) jitters. Jairam Ramesh, Congress spokesman identified the decisions as a "panic reaction", which would not have taken place if Rajan had not made the announcement. He also said the Congress does not believe that FDI is a magic wand. Informing the media, Commerce Minister Nirmala Sitharaman said that decisions would pull in more investments, create jobs and make India the global manufacturing center. Economic Affairs Secretary Shaktikanta Das said the changes would eliminate dual clearances of proposals and will bolster manufacturing and create more jobs. "Now various sectors would be under automatic approval route, apart from a small veto list. India is now the most open economy in the world for FDI," the PMO statement said, with regard to the changes made.

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