A 100 per cent FDI allowance for trading, including e-commerce in food products that are made in India, can be expected to enthuse the major players in this sector. The announcement led to stocks of some of these airlines moving up the graph. With regard to airports, the government has permitted 100 per cent FDI in brownfield projects through the automatic route. Similarly, the FDI limit in TV news and FM radio was increased to 49% under the government route.
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“With 100 per cent FDI now to be allowed in marketing of food products produced and manufactured in India, it is expected that the farmers will also get better prices from the heavy reduction in post-harvest losses”.
Interestingly, a proposal to hike the FDI limit from 49 per cent in local airlines in the draft civil aviation policy did not find a place in the final document, which was approved by the Cabinet on June 15.
The government, however, clarified that the infusion of fresh foreign investment, beyond 49% in a company not seeking licence/permission from sectoral ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require FIPB approval. Modi tweeted the changes would make India “world’s open economy for FDI” and provide a “major impetus to employment and job creation”.
The changes are likely to benefit companies that see India as the next growth market, the Journal said.
The Left leader said that the government’s decision to allow increased FDI in defence was surprising.
Indian government has announced it will relax the local sourcing requirements that have prevented foreign companies, including Apple, from entering the nation, reported Bloomberg.
The Indian market is wooing foreign airlines.
In 2013, we became the first global airline to invest in an Indian carrier-Jet Airways-under the then FDI rules.
He pointed out that the real implications are not much for existing scheduled airlines, but for regional carriers under the new civil aviation policy.
But the sector did not attract investment because the policy was “highly discretionary”.
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According to the Government, most of the sectors are now under automatic approval route, except a few. The flow of FDI into India may also be dependent on the economic situation in the developed countries from where most of the investment has to come. Some companies may also wait for more clarity.
