"Allowing 100% FDI under automatic route for the Single Brand retail will provide impetus to the development of infrastructural capabilities like warehousing and assist in creation of a well-organized and agile retail supply chains", said Anil Khaitan. Foreign single-brand retail companies can set up operations without any time lag, thanks to the nod for 100% FDI under the automatic route. Similarly, with the government relaxing norms for Air India, foreign airlines can now invest up to 49% under approval route in the sale-bound Indian carrier.
By allowing 49% FDI in Air India, the government will likely get more bidders and hence a better valuation. However, foreign investors' purchases were restricted to the secondary market only.
The cabinet also allowed foreign airlines to invest up to 49 percent in the debt-ridden national carrier Air India, subject to government approval.
Opening up of FDI for real estate brokers will surely help the sector in India.
NEW DELHI-India moved to relax restrictions on foreign investment in retail, airlines and other industries Wednesday, in hopes of attracting more capital and expertise to Asia's third-largest economy.
Even while acknowledging that changes in FDI policy should not be equated with big reforms - that description should be reserved for such changes as fundamentally reshaping agricultural or labour markets - this criticism is a tad unfair.
"Global brands across different categories, from apparel to electronics to accessories will be aided through this, providing further options to Indian consumers and improving India?s ranking in ease of doing business", he added.
Relaxing a procedural requirement, the government said it has now been decided that for investments in automatic route sectors, requiring approval only on the matter of investment being from country of concern (that is Pakistan and Bangladesh), FDI applications would be processed by the DIPP for government nod.