New Delhi: Cabinet
yesterday gave ex-post-facto approval to the easing of Foreign Direct Investment (FDI) policy in 15 sectors that was approved by the Prime Minister
Narendra Modi last month.
The
Cabinet, headed by PM Modi, approved the relaxation in FDI policy for 15
sectors including real estate, defence, civil aviation and News broadcasting,
official sources said. On November 10, PM Modi had in the immediate aftermath
of BJP's rout in Bihar assembly polls, approved a raft of reforms aimed at
boosting investor confidence and drumming up FDI for faster growth.
While
restrictions in the construction sector were freed up by allowing overseas
investors to exit and repatriate investment even before project completion,
foreign direct investment (FDI) up to 49 percent stake in defence firms and
regional airlines has been allowed without government nod.
As part
of the reform exercise, the government had allowed 100 percent FDI in cable and
direct-to-home TV operators, duty free shops and investment through automatic
route in limited liability partnerships.
It also
permitted portfolio investors to buy up to 74 percent in local private banks,
with full fungibility, while palm, coffee and rubber plantations have been
opened up for the first time.
Rules for
sourcing for single-brand retailers particularly for high-tech have been eased
by allowing them to sell online without specific permissions. But there is no
change in 51 percent limit for retailers like Wal-Mart in multi-brand
retailing.
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