Union Cabinet okays 100 per cent FDI in single brand retail through automatic route

New Delhi, Jan 10 (KNN) The Union Cabinet chaired by Prime Minister Narendra approved the proposal to allow 100 per cent FDI or foreign direct investment through automatic route in single brand retail.

At present FDI up to 49 per cent is permitted under automatic route in single brand retail. Investments beyond that required consent from the government.

Also earlier foreign investments that value more than 49 per cent were subject to certain terms and conditions including mandatory sourcing from the Micro, Small and medium Enterprises (MSMEs).

Also as a part of decisions with regard to FDI, the government has also approved investments up to 49 per cent in Air India.

"Foreign investment(s) in Air India including that of foreign Airline(s) shall not exceed 49% either directly or indirectly. Substantial ownership and effective control of Air India shall continue to be vested in Indian National," the release from the government said. (With PIB Inputs) (KNN/DA)