Revised FDI Norms

GS-III: Revised FDI Norms

News

Recently, the Union Cabinet has approved the proposal for the review of Foreign Direct Investment in various sectors. This will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth.

Revised Norms

100% FDI under automatic route is permitted for the sale of coal, for coal mining activities including associated processing infrastructure.
The government has allowed 100% FDI through the automatic route for contract manufacturing.
It will augment the Make in India initiative and will attract global companies in India looking to establish alternative manufacturing hubs.
Easing norms for FDI in Single Brand Retail Trading (SBRT): Retail trading through online trade by SBRT, can also be undertaken prior to the opening of brick and mortar stores (it should be opened within 2 years from the date of start of online retail).
Online sales will lead to the creation of jobs in logistics, digital payments, customer care, training and product skilling.
It has been decided to permit 26% FDI under the government route for uploading/ streaming of News & Current Affairs through Digital Media, along the lines of print media.
In India, FDI policy provisions have been progressively liberalized across various sectors in recent years to make India an attractive investment destination.
Some of the sectors include Defence, Construction Development, Trading, Pharmaceuticals, Power Exchanges, Insurance, Pension, Other Financial Services, Asset reconstruction Companies, Broadcasting and Civil Aviation.
Due to these measures, the total FDI into India from 2014-15 to 2018-19 has been $ 286 billion.
Despite the dim global picture (UNCTAD's World Investment Report 2019), India continues to remain a preferred and attractive destination for global FDI flows.
India seeks to use this potential to attract far more foreign investment which can be achieved inter-alia by further liberalizing and simplifying the FDI policy regime.

Source: The Hindu

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