FDI Norms in various sectors such as single brand retail were relaxed by the Cabinet today. It also allowed an investment of up to 49% by foreign airlines in Air India, reported PTI.
The Cabinet meeting chaired by Prime Minister Narender Modi allowed overseas investors a 100 percent FDI (Foreign Direct Investment) in single-brand retail trading and construction development without any government approval, an official statement said.
Foreign airlines could invest up to the limit of 49% of paid-up capital in Indian scheduled and non-scheduled air transport services, under government approval route as per policy. This provision was however not applicable to Air India. The restriction has now been relaxed allowing foreign airline investment in Air India and is subject to certain conditions.
The statement said that direct or indirect foreign investment in Air India should not exceed 49 percent so that the substantial ownership and effective control continues to be vested in Indian Nationals.
The government said that the decision would help provide ease of doing business and also lead to larger FDI inflows contributing to the growth of investment, income, and employment.
The Cabinet clarified that real-estate broking service does not amount to real estate business and is, therefore, eligible for 100 per cent FDI under the automatic route. It has also decided to allow FIIs/FPIs to invest in power exchanges through the primary market which were earlier restricted to secondary market only.
source: goodreturns.in
