100 percent FDI cleared for single brand!

Cornelia Mascio
Gennaio 13, 2018

Earlier also 100 per cent FDI was allowed in the segment, but it required government approval.

The RSS-affiliated Swadeshi Jagaran Manch on Thursday strongly opposed the Centre's decision to allow 100 percent FDI under automatic route for single brand retail and foreign investment up to 49 percent in Air India, saying these decisions are not in "interest of the country". The Cabinet has allowed 100% FDI via automatic route in single brand retail trading and construction, while it has raised the existing limit in power exchanges and aviation sectors.

"More worrisome is the decision to set off the condition of mandatory sourcing requirement of 30% of purchases from India, for 5 years after the opening of the first store by the foreign company". It is therefore, eligible for 100 per cent FDI under the automatic route.

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

India's government has eased regulations for foreign investors in an effort to boost economic growth in the Asian nation. A consultant has been appointed; the process is expected to start in February; and now, there's the announcement that foreign airlines can hold 49% as long as control and management is with Indians or Indian companies. "We also express our strong resentment to (the) Union cabinet's decision to allow foreign investment up to 49 per cent in Air India and other decisions", the organisation's all-India co-convener, Ashwani Mahajan, said.

The government has allowed investment of about 49% on Air India, ahead of the union budget 2018-19.

This is the second major liberalisation in FDI policy by the NDA government in one go after major changes effected in June 2016.

The Government claimed that these measures have resulted in increased FDI inflows. Commenting on this strategic move by the government, commerce minister Suresh Prabhu said that this Liberalization move was to gather more investments, and develop the economy of India. During 2015-16, country received total FDI of $55.46 billion.

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