Wednesday 28 August 2019

Govt okays 100% FDI in contract mfg, eases rules for single brand retail

The government on Wednesday relaxed FDI rule for foreign single brand retailers and also permitted foreign investment in contract manufacturing and coal mining.
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Briefing reporters on the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Commerce and Industry Minister Piyush Goyal said 100 per cent foreign direct investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.

To boost domestic manufacturing, 100 per cent FDI in contract manufacturing under automatic route has been allowed, he said, adding that 26 per cent FDI has been allowed in digital media.
On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30 per cent 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.
Key announcements on FDI
100% FDI under automatic route in coal mining and associated infrastructure will be allowed
Cabinet allows 100% FDI in contract manufacturing under automatic route
Cabinet relaxes FDI rules for single brand retail; expands definition of 30% domestic sourcing
Cabinet allows online retailing under single-brand retail; relaxes rule of mandatory brick-and-mortar store
Union Cabinet approves 26% FDI in digital media

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