FDI policy liberalised, 100% FDI now in retail, construction

FDI policy liberalised, 100% FDI now in retail, construction

Under the circumstances, it would be prudent to honour the report of the parliamentary committee, which has recently recommended against the disinvestment in Air India and has recommended for holding back this decision for the time being, he added.

Swadeshi Jagran Manch has said that easing the norms for FDI in SBRT would go against the best interest of the country.

For single brand retail trading, there is no approval required of the Government for 100% FDI.

In the case of medical devices, the government has permitted a wide range of items that can attract up to 100 per cent FDI via the automatic route.

While foreign airlines were allowed to invest up to 49 per cent in the paid-up capital of Indian private airlines under the government approval route, this provision was not applicable to Air India.

Besides, the clarification that real estate broking service will not amount to real estate business has addressed the issue being faced by such firms.

While India has seen its economy slowing recently, it has managed to secure a lot of foreign capital even without the new opportunities in place for entrepreneurs from overseas.

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By allowing 49% FDI in Air India, the government will likely get more bidders and hence a better valuation.

A government forecast said growth in Asia's third-largest economy will slow to 6.5 per cent in the financial year 2017 to 2018 against the previous year's 7.1 per cent.

This is the second time that the FDI policy has been changed by the current government.

In big bang reforms ahead of BJP governments last full Budget, foreign airlines were today allowed to buy up to 49 per cent stake in Air India while easing FDI rules for several sectors including single brand retail and construction.

However, FII/FPI (foreign portfolio investors) purchases were restricted to secondary market only.

Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek said the move would help further improve investment climate in India.

This is published unedited from the PTI feed.

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