100 percent FDI cleared for single brand!

100 percent FDI cleared for single brand!

Moreover, they have also expressed strong resentment to Union Cabinet's decision to allow foreign investment up to 49% in Air India and other decisions about easing of norms for FDI and FIIs. The only significant change has been the decision to allow foreign airlines to acquire up to 49% in Air India, these critics admit, but we are still far too early in the disinvestment process of the state-owned airlines to make much of this.

India has secured robust foreign investment inflows in recent years, but its economic growth has slowed recently.

The amendments are meant to liberalise and simplify the FDI policy so as to provide ease of doing business. Foreign single-brand retail companies can set up operations without any time lag, thanks to the nod for 100% FDI under the automatic route.

Regarding the liberalisation in the construction development segment, the government has made a decision to clarify that real estate broking service does not amount to real estate business and is therefore, eligible for 100 per cent FDI under automatic route.

In construction sector, the Government clarified that real-estate broking service eligible for 100% FDI under automatic route.

Deloitte India Partner Anil Talreja said allowing 100 per cent foreign direct investment (FDI) in single brand retail trade should act as a catalyst for a large number of retailers that have been exploring Indian market.

Wednesday's cabinet decisions came before the prime minister was to leave for the World Economic Forum meeting in Davos, Switzerland where Modi is expected to tout India as an attractive investment destination.

Air India had a total debt of about Rs 48,877 crore at the end of March 2017, of which about Rs 17,360 crore was aircraft loan, and Rs 31,517 crore for working capital.

For single brand retail trading, there is no approval required of the Government for 100% FDI.

This is the second time that the FDI policy has been changed by the current government.

This is published unedited from the PTI feed.