100 percent FDI cleared for single brand!

100 percent FDI cleared for single brand!

"It has been made a decision to clarify that real-estate broking service does not amount to real estate business and is therefore, eligible for 100% FDI under automatic route", the statement said.

Opposing the disinvestment of Air India, Mahajan said the finances of national airline are in deep trouble, but allowing foreign investment is not the best of the solutions for ending its troubles.

Expressing strong resentment on the government's decisions of easing FDI investments, Swadeshi Jagran Manch (SJM) co-convener Ashwani Mahajan said, the organisation, "firmly believes that easing the norms for FDI in SBRT would go against the best interest of the country". "In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment", said an official statement.

"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.

The cabinet also allowed foreign airlines to invest up to 49 percent in the debt-ridden national carrier Air India, subject to government approval.


In the case of medical devices, the government has permitted a wide range of items that can attract up to 100 per cent FDI via the automatic route. It is expected to report a net loss of Rs 3,579 crore for 2017-18. Commenting on this strategic move by the government, commerce minister Suresh Prabhu said that this Liberalization move was to gather more investments, and develop the economy of India. The Cabinet has allowed 100% FDI via automatic route in single brand retail trading and construction, while it has raised the existing limit in power exchanges and aviation sectors. However, foreign investors' purchases were restricted to the secondary market only.

This is the second time that the FDI policy has been changed by the current government. "This should also generate employment and give the Indian consumers access to several worldwide brands", said Pinakiranjan Mishra, partner and national leader, consumer products and retail, EY.

Secretary in the Department of Industrial Policy and Promotion (DIPP) Ramesh Abhishek said the move would help further improve investment climate in India.

Earlier the applications were processed by the Ministry of Home Affairs.

This is published unedited from the PTI feed.

Related Articles