FDI rules for retail giants made easier
In a slew of measures to make foreign investment in the country easier and more attractive, the government on Thursday relaxed investment norms in multi-brand retail and raised FDI caps in several sectors, while making it 100 per cent in telecom.
The Union Cabinet, at its meeting chaired by Prime Minister Manmohan Singh, decided to dilute the mandatory 30 per cent local sourcing norms for multi-brand retailers and permitted states to include cities with populations less than one million for allowing multi-brand retailing.
Announcing these decisions, commerce minister Anand Sharma said the relaxation in multi-brand retail norms will give “more clarity and more space to investors”.
The minister, however, made no reference to raising of the FDI cap in the insurance sector. An inter-ministerial group had last month agreed to raise it from 26 per cent to 49 per cent.
The Cabinet, Mr Sharma said, had by and large cleared decisions taken at the inter-ministerial group meeting chaired by the Prime Minister on July 16 to raise FDI caps and eased the route for some business ventures like oil refineries.
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