The Union cabinet on Wednesday cleared a proposal allowing 100 per cent foreign direct investment (FDI) in single-brand retail via automatic route, a release by the government said. The cabinet also eased FDI rules for aviation and the construction sectors.
In a statement issued, the government said the move was to liberalise and simplify the FDI policy to provide ease of doing business in the country. The decision, it claims, will lead to larger FDI inflows contributing to growth of investment, income and employment.
The existing policy FDI policy on Single Brand Retail Trading (SBRT) allows 49 per cent FDI under automatic route, and FDI beyond 49 per cent and up to 100 per cent through government approval route. It has now been decided to permit 100 per cent FDI under automatic route for SBRT.
Cabinet also approved major changes in FDI policy in aviation and construction sectors. To facilitate Air India divestment, Cabinet has also approved investment up to 49 per cent under approval route In Air India.