Red carpet to global investors |
In one of the most important decisions taken by the Modi government in its second tenure, the union cabinet committee on Wednesday allowed foreign direct investment (FDI) in coal mining, contract manufacturing and digital media, while easing rules for single-brand retail to make it attractive for global brands to invest in India. The finance ministry also notified rules allowing 100% FDI for insurance intermediaries. The FDI changes are in line with budget announcements, although a decision on aviation sector is awaited. Addressing the media after the meeting, commerce and industry minister Piyush Goyal said, “The changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth.” The moves come amid an anticipated slowdown in global FDI flows and are aimed at spurring investment, especially in new ventures, given that domestic companies are refusing to pump in money in expanding facilities, citing excess production capacity. Easier rules in single-brand retail are aimed at helping international players which can now hope to undertake online sales for two years while they open their retail outlets. Besides, rules were eased on Monday to treat exports from India as part of the 30% domestic sourcing obligation.
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