Cabinet approves 100% FDI in retail, construction

Representational Image

Representational Image

The Union Cabinet on Wednesday approved 100 per cent foreign direct investment (FDI) in single-brand retail and construction through the automatic route.

The FDI in real estates has been increased to 100%.

The government said the latest amendments are "intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country". The foreign airlines can invest in Air India only up to 49% in all routes.

Stocks like Indian Terrain, Monte Carlo and Zodiac Clothing rallied 5-8 percent after finally the Cabinet has approved 100 percent foreign direct investment in single-brand retail that had been pending for long.

More news: Here Are the Golden Globe Winners in the TV Categories
More news: Huge oil tanker at risk of exploding after collision; 1 body found
More news: Shilpa Shinde asks Akash Dadlani to stay within his limits

Besides, 49% FDI has now been allowed directly for power exchanges as well.

For investments in automatic route sectors, FDI applications will be processed by the Department of Industrial Policy and Promotion.

"Foreign investment (s) in Air India including that of foreign Airline (s) shall not exceed 49 per cent either directly or indirectly". However, FII/FPI purchases were restricted to secondary market only. In the pharma sector, the Cabinet chose to amend the definition of medical devices in the FDI policy. The Cabinet also decided to make changes relating to competent authority for examining FDI proposals from countries of concern. Beyond that limit, an approval from the government is required. Thus, we can expect some foreign investors backing real estate brokerage firms now, thereby inciting new growth in the sector.

The earlier FDI policy allowed foreign carriers to own 49 per cent in Indian carriers, but had kept Air India out of it, which has been amended by the Cabinet now.

Recommended News

  • Bernanke sees Powell's Fed looking at new inflation target regimes

    Bernanke sees Powell's Fed looking at new inflation target regimes

    The Fed has undershot its target for most of the past five years. "Accountability is absolutely critical", Williams said on the panel.
    Safestore (SAFE) Price Target Raised to GBX 560 at Liberum Capital

    Safestore (SAFE) Price Target Raised to GBX 560 at Liberum Capital

    Barclays Capital maintained Ocado Group plc (LON:OCDO) on Friday, December 18 with "Equal Weight" rating. Bank of America maintained Persimmon plc (LON:PSN) on Tuesday, September 12 with "Underperform" rating.
    James Franco Accused Of Sexual Misconduct Amid Golden Globes Attendance

    James Franco Accused Of Sexual Misconduct Amid Golden Globes Attendance

    Breakfast Club actress Ally Sheedy said in a series of now-deleted tweets , " James Franco just won ". In my life, I pride myself on taking responsibility for things that I've done", he continued.
  • Angelo Mathews reinstated as Sri Lanka's limited overs skipper

    Angelo Mathews reinstated as Sri Lanka's limited overs skipper

    From the beginning of his worldwide career, Angelo Mathews was touted for greatness, not only as a player but also as a leader. Hathurusingha has assured that he is aware of Mathews' recent injuries and has got a plan that will help him and Sri Lanka.

    Manchester City vs Bristol City: Carabao Cup semi-final

    City have looked unstoppable so far this season. "It's their hospitality today too so I hope they've got one for me". The Carabao Cup enters its semi-finals stage this week, with the first leg of both the ties due to be played out.
    Goku Black Rose Added to Dragon Ball FighterZ Roster With New Trailer

    Goku Black Rose Added to Dragon Ball FighterZ Roster With New Trailer

    In addition to a new character reveal, Bandai Namco recently shared the game's opening cinematic movie . Other features include a limited set of Stamps, lobby avatar customization, and two dramatic scenes.
  • World Bank predicts solid 3.1% global growth in 2018

    World Bank predicts solid 3.1% global growth in 2018

    The World Bank sees potential growth slowing to around 2 percent between 2018-2027, compared with 2.5 percent between 2013-17. WB analysts think that the increase in investments, industrial production and trade will contribute to the growth.

    Accredited Investors Inc. Invests $654000 in Cisco Systems, Inc. (CSCO) Stock

    Hence the difference between Predicted EPS and Actual EPS reported is $0.01/share which shows an Earnings Surprise of 1.7 Percent. It turned negative, as 53 investors sold FB shares while 618 reduced holdings. 40 funds opened positions while 58 raised stakes.
    Shocking claim about Michelle Williams' pay for movie reshoot

    Shocking claim about Michelle Williams' pay for movie reshoot

    Pay discrepancies are sadly nothing new in the entertainment business, or anywhere really, but they rarely get this egregious. There's been no comment forthcoming thus far from any of those involved in the story.
  • Judge ends case over armed standoff in Nevada land dispute

    Judge ends case over armed standoff in Nevada land dispute

    Cliven Bundy was the leader of the movement to extort the federal government into returning his cattle, the indictment said. Cliven Bundy would not pay grazing fees, arguing the land belongs to the state and not the USA government.
    JNU Scholar Missing, CCTV Shows Him Leaving Campus

    JNU Scholar Missing, CCTV Shows Him Leaving Campus

    According to the initial investigation, Mukul left his residence in Ghaziabad on early Monday morning and had reached JNU campus. Reports suggest Mukul was last seen on his way to the laboratory.
    Google faces a lawsuit over discriminating against white men and conservatives

    Google faces a lawsuit over discriminating against white men and conservatives

    Google said it fired Damore for violating its code of conduct and advancing "harmful gender stereotypes in our workplace". Ex-employee James Damore files lawsuit after being fired; William La Jeunesse has the latest details on the case .

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.