Cabinet approves 100pc FDI in single brand retail, construction; 49pc in AI


Agencies, New Delhi In a major policy decision, Cabinet on Wednesday approved 100 per cent Foreign Direct Investment (FDI) under automatic route in Single Brand Retail Trading (SBRT) and Construction Development. The Union Cabinet chaired by the Prime Minister Narendra Modi, has also given its approval to Foreign Airlines to invest up to 49 per cent under approval route in Air India. The cabinet also approved Foreign Institutional Investors/foreign portfolio investors (FIIs/FPIs) to invest in Power Exchanges through primary market apart from approving definition of ‘medical devices’ amended in the FDI Policy. These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment. While extant FDI policy on SBRT allows 49 per cent FDI under automatic route, and FDI beyond 49 per cent and up to 100 per cent through government approval route, it has now been decided to permit 100 per cent FDI under automatic route for SBRT.