The government today said it is taking steps to relax norms for Foreign Direct Investment in several sectors including single brand retail, digital media and manufacturing to boost the flagging economy. Briefing reporters on the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Commerce and Industry Minister Piyush Goyal said 100 per cent Foreign Direct Investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.
The government today said it is taking steps to relax norms for Foreign Direct Investment in several sectors including single brand retail, digital media and manufacturing to boost the flagging economy.
Here are the major announcements of the Centre:
1. On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30 per cent domestic sourcing norm
2. Companies can now start online retailing before establishing a physical store and there will be 26 per cent FDI in digital media.
3. Local sourcing will be not be year-on-year, but instead on block of five years.
4. Exports will also be included in the 30 per cent that the foreign investor will have to source locally. 30 per cent local sourcing norm in retail eased.
5. Railways and Commerce Minister Piyush Goyal said there was the largest FDI inflow last financial year. There has been $286 billion FDI since 2014-15, he said. Mr Goyal said they have been working to ensure increased investments. He ensured a steady flow of FDI even when it slows down across the world.
6. There will be 100 per cent FDI in coal mining and associated infrastructure through an automatic route.
7. FDI norms for contract manufacturing sector has also been relaxed as the government allowed 100 per cent FDI via automatic route in the sector.
8. Mr Goyal also said they see an opportunity to make India a manufacturing hub which will boost employment. He said FDI regulations have been liberalised and simplified.
9. There will be a Rs. 6,268 crore subsidy for export of 6 million tonnes of sugar during the 2019-20 marketing year starting October in order to liquidate surplus domestic stock and help mills in clearing huge sugarcane arrears to farmers.
10. 75 government medical colleges to be attached with existing district or referral hospitals by 2021-22. The establishment of new medical colleges will add at least 15,700 MBBS seats in the country. The new medical colleges would be set up in under-served areas having no medical colleges, with district hospitals having at least 200 beds, a government statement said. This will cost Rs. 24,375 crore.
