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Cabinet Gives Green Signal For 100 Per Cent FDI In Single Brand Retail, Construction And 49 Per Cent In Air India
Maharashtra Chief Minister Devendra Fadnavis at the Ground-breaking ceremony of Ikea in Navi Mumbai in May 2017 (Bachchan Kumar/Hindustan Times via Getty Images)
The Union Cabinet today (10 January) approved the proposal to allow 100 per cent foreign direct investment (FDI) via the automatic route in single brand retail. Until now, FDI up to 49 per cent wass permitted in the sector and any investment above the limit required approval from the government. Looking to attract more overseas investment, the Cabinet also reviewed FDI policy in certain sectors.
The policy relaxation is aimed to provide a more investor-friendly climate for foreign players that would result in increased job creation.
FDI rose by 17 per cent to $25.35 billion between April and Spetember and increased by 9 per cent to $43.48 billion in 2016-17.
The Cabinet also gave the green signal for 100 per cent FDI in construction development.
Also given the go-ahead was for foreign airlines to invest up to 49 per cent in national flag carrier Air India, but under the approval route. This will help expedite the divestment of the ailing airline. A group of ministers will finalise the terms for the sale and an expression of interest (EOI) will likely be invited from bidders soon.
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