India Government has approved amendments to Foreign Direct Investment (FDI) policy to provide ease of doing business in the country.
Under the amended policy, 100% FDI is now allowed in Single Brand Retail Trading (SBRT) as against 49% earlier. It has been decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1st April of the year of the opening of first store against the mandatory sourcing requirement of 30% of purchases from India.
In civil aviation, foreign airlines have been allowed to invest upto 49% in Air India while 100% FDI is now permitted in real estate broking services. Foreign Institutional Investors (FII) and FPIs are now allowed to investment in power exchanges upto 49% through primary markets as against earlier stipulation that it can only be through secondary markets.
The Department of Industrial Policy and Promotion (DIPP) will process applications for FDI through automatic route requiring approval only on the matter of investment being from country of concern while cases pertaining to government approva route sectors/activities requiring security clearance will be processed by respective administrative ministries/departments.