FDI policy further liberalized in several sectors
10 Jan 2018
On 10 January 2018, the Union Cabinet approved a number of amendments in the Foreign Direct Investment Policy, mainly intended to liberalise and simplify the policies related to FDI. Among other things, the major changes are: (1) 100% FDI under automatic route is allowed for Single Brand Retail Trading and the Government approval is no longer required. (2) Foreign airlines are allowed to invest up to 49% under the approval route in Air India subject to certain conditions. (3) Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) are allowed to invest in power exchanges through primary market. (4) It is clarified that real-estate broker services do not amount to real estate business and are therefore eligible for 100% FDI under the automatic route.
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Type:
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Entry and establishment (Ownership and control, Approval and admission)
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Industry:
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Not industry specific
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Manufacturing (Manufacture of basic pharmaceutical products and pharmaceutical preparations)
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Services (Electricity, gas, steam and air conditioning supply, Wholesale and retail trade, Transportation and storage, Real estate activities)
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Sources:
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Press Information Bureau, FDI policy further liberalized in key sectors , http://pib.nic.in/newsite/pmreleases.aspx?mincode=61, 10 Jan 2018
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The Hindu Business Line, Cabinet okays 100% FDI in single brand retail via automatic route, http://www.thehindubusinessline.com/economy/policy/cabinet-approves-100-fdi-in-single-brand-retail-via-automatic-route/article10023519.ece, 10 Jan 2018
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Moneycontrol news, Cabinet approves 100% FDI in single-brand retail & construction, Air India stake sale up to 49%, http://www.moneycontrol.com/news/business/up-govt-issues-order-for-action-against-loudspeakers-at-religious-public-zone-2484617.html, 10 Jan 2018
