Which one of the following sectors is not affected by the changes made

Which one of the following sectors is not affected by the changes made in the Foreign Direct Investment Policy in June 2016?

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Multi-brand retailing

Defence

Private security agencies

Manufacturing of small arms and ammunitions covered under the Arms Act, 1959

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CDS-1 – 2017

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The changes made in the Foreign Direct Investment (FDI) Policy in June 2016 significantly liberalized norms across various sectors. While sectors like defence, civil aviation, pharmaceuticals, private security agencies, and manufacturing of small arms and ammunitions saw substantial policy changes (increased FDI limits, shift to automatic route), the policy regarding Multi-brand retailing remained largely unchanged at 51% FDI subject to various conditions. Therefore, multi-brand retailing was the sector least affected by the specific *changes* announced in the June 2016 package compared to the other listed options which saw significant liberalization.

The June 2016 FDI policy changes focused on liberalizing norms in many sectors. Multi-brand retail FDI policy (51% with conditions) was not part of the major liberalization drive in this specific announcement.

The June 2016 FDI reform package included increasing FDI limits or bringing more activities under the automatic route in sectors such as Defence (up to 100%), Civil Aviation (up to 100% in airlines with certain conditions), Pharmaceuticals (up to 100%), Private Security Agencies (up to 74%), Manufacturing of small arms under Arms Act, 1959 (up to 100%), Food Products manufacturing and trading (100%), Broadcasting, etc. Multi-brand retail FDI continued to be governed by the existing policy.

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