Chennai, October 5: Union Minority Affairs Minister Mukhtar Abbas Naqvi said on Saturday the changes in the foreign direct investment (FDI) policy will lead to increased investments. Speaking at the 'Grahak Mela -- Customer Outreach Initiative' organised by the various banks here, Naqvi said the Central government has approved the proposal for reviewing FDI in various sectors. He said the changes in the policy will make India a much more attractive FDI destination, leading to the benefits of increased investments, employment and growth.

According to Naqvi, the announcements made by the government in recent times clearly demonstrate the intention to make India a better place to do business, improve opportunities for all sections of the society and increase prosperity to make it a $5 trillion economy. Naqvi said India has made it easier to do business in four areas -- starting a business, resolving insolvency, trading across borders and construction permits. PM Modi Cabinet Approves Liberalisation Of FDI Norms To Boost Indian Economy.

He said the Insolvency and Bankruptcy Code (IBC) has played a key role in bringing reforms in the banking sector to further strengthening it. According to Naqvi, the decision to merge 10 public sector banks (PSBs) into four is a major step in banking reforms taken by the Narendra Modi-led government.

This would bring down the number of banks in the country from 27 in 2017 to 12. The Central government will infuse upfront Rs 70,000 crore into the public sector banks to enable the release of Rs 500,000 crore liquidity in the marker which will benefit corporates, MSME retail borrowers, small traders and others.

According to Naqvi, in the last five years, FDI worth $29,000 crore came to the country, which is 50 per cent of the foreign investment in 20 years. Naqvi also said that the Narendra Modi-led government is working effectively for the welfare of the people.

(The above story first appeared on LatestLY on Oct 05, 2019 05:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).