The government on August 28 relaxed FDI rule for foreign single brand retailers and also permitted foreign investment in contract manufacturing and coal mining.
List of the important decisions on FDI by the Cabinet:
- Allows 100% FDI under automatic route in coal mining and associated infrastructure
- Allows 100% FDI in contract manufacturing under automatic route
- Relaxes FDI rules for single brand retail; expands definition of 30% domestic sourcing
- Allows online retailing under single-brand retail; relaxes rule of mandatory brick-and-mortar store
- Approves 26% FDI in digital media
Briefing reporters on the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Commerce and Industry Minister Piyush Goyal said 100% foreign direct investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.
To boost domestic manufacturing, 100% FDI in contract manufacturing under automatic route has been allowed, he said, adding that 26% FDI has been allowed in digital media.
On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30% domestic sourcing norm. It also allowed single brand retailers to start online sales, waiving the previous condition of setting up a mandatory brick-and-mortar store, he said.
