Government Opens Up FDI Door Further

Cabinet eases norms on single brand retail trade; provides booster dose for sugar exports, contract manufacturing

To help revive economic activity by attracting more foreign direct investment (FDI), the Union Cabinet on Wednesday relaxed several rules in areas such as single-brand retail, contract manufacturing, coal mining, and digital media. Most of the decisions taken on Wednesday are in line with the announcements made in the Union Budget last month.

The Union Cabinet has also approved setting up of 75 government medical colleges in areas where no such colleges exist; extending the export subsidy to 6 million tonnes of sugar worth 6,268 crore; and establishing an international Coalition for Disaster Resilient Infrastructure (CDRI), with a supporting Secretariat Office in New Delhi.

Also, 100 percent FDI under the automatic route has been allowed in contract manufacturing to give a boost to domestic manufacturing, Commerce and Industry Minister Piyush Goyal informed the media after the Cabinet meeting.