Business

Cabinet Approves 100% FDI In Single Brand Retail, Foreign Airlines Can Invest Up To 49% In Air India

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| January 10 , 2018 , 15:16 IST

The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday gave several approvals to amendments in the FDI policy bring further liberalization in key sectors.

Ahead of the Union Budget, the cabinet cleared a proposal allowing 100% foreign direct investment in single-brand retail via the automatic route. Government approval will no longer be required for FDI in this sector. The existing policy allowed up to 49% FDI via automatic route and up to 100% through government approval.

Cabinet has also decided to permit single brand retail trading entity to set off its incremental sourcing of goods from India for global operations during initial 5 years, beginning 1st April of the year of the opening of first store against the mandatory sourcing requirement of 30% of purchases from India.

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The cabinet in a historic decision has given approval for foreign airlines to invest up to 49% under approval route in Air India.

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Foreign Investments in Air India shall not exceed 49% directly or indirectly thus continuing the substantial ownership and effective control of Air India vested in Indian National.