The decisions came ahead of Modis participation in World Economic Forum at Davos this month where he is likely to hard sell India as an attractive investment destination. "We believe the decision to allow 100 per cent FDI through automatic route will ease the process for foreign as well domestic brands", Retailers Association said.
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 has now been chose to do away with this restriction and allow foreign airlines to invest up to 49% under approval route in Air India", it said. Senior Congress leader Anand Sharma said that 100 per cent FDI in single brand retail was notified during the previous UPA government and the only change made is to allow it through the automatic route.
He has said that the government is taking the plea of huge loss Air India is being burdened with to justify its move, but the Centre is seeking to hide the fact that the carrier has been pushed to this situation not because of its management's failure but owing to "imposition of disastrous decisions on the company by successive governments at the Centre".
India's cabinet on Wednesday eased regulations for Foreign Direct Investment (FDI) in key sectors such as single-brand retail, construction and civil aviation in an effort to increase economic growth. 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.
However, FII/FPI (foreign portfolio investors) purchases were restricted to secondary market only.
Opening up of FDI for real estate brokers will surely help the sector in India.
This is the second major liberalisation in FDI policy by the NDA government in one go after major changes effected in June 2016. "This should also generate employment and give the Indian consumers access to several global brands", said Pinakiranjan Mishra, partner and national leader, consumer products and retail, EY.
Earlier the applications were processed by the Ministry of Home Affairs.