New Delhi, Aug 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the proposal for Review of Foreign Direct Investment on various sectors, Union Minister Prakash javadekar said.
This includes allowing 100 per cent FDI in coal mining under the automatic route, easing local sourcing norms for FDI in Single Brand Retail Trading and allowing 26 per cent FDI in digital media under automatic route.
Javadekar said It had been decided to permit 100 per cent FDI under automatic route for sale of coal, for coal mining activities including associated processing infrastructure subject to provisions of Coal Mines (special provisions) Act, 2015 and the Mines and Minerals (development and regulation) Act, 1957 as amended from time to time, and other relevant acts on the subject. "Associated Processing Infrastructure" would include coal washery, crushing, coal handling, and separation (magnetic and non-magnetic).
For sale of coal, 100 per cent FDI had been allowed under automatic route for coal mining, activities including associated processing infrastructure will attract international players to create an efficient and competitive coal market.
Subject to the provisions of the FDI policy, foreign investment in 'manufacturing' sector is under automatic route. Manufacturing activities may be conducted either by the investee entity or through contract manufacturing in India under a legally tenable contract, whether on Principal to Principal or Principal to Agent basis.
FDI is now being permitted under automatic route in contract manufacturing , which will be a big boost to Manufacturing sector in India.
It has also been decided to permit 26 per cent FDI under government route for uploading/ streaming of News and Current Affairs through Digital Media, on the lines of print media.
The extant FDI policy provides for 49 per cent FDI under approval route in Up-linking of 'News & Current Affairs' TV Channels.
The Cabinet also decided to ease FDI norms in single brand retail.
Total FDI into India from 2014-15 to 2018-19 has been $286 billion as compared to $189 billion in the five years prior to that (2009-10 to 2013-14). In fact, total FDI in 2018-19 i.e. $64.37 billion (provisional figure) is the highest-ever FDI received for any financial year.
Global FDI inflows have been facing headwinds for the last few years. As per UNCTAD's World Investment Report 2019, global foreign direct investment (FDI) flows slid by 13 per cent in 2018, to $1.3 trillion US dollars from $1.5 trillion the previous year - the third consecutive annual decline.
Despite the dim global picture, India continues to remain a preferred and attractive destination for global FDI flows. However, it is felt that the country has the potential to attract far more foreign investment which can be achieved inter-alia by further liberalizing and simplifying the FDI policy regime, Mr Javadekar said. (UNI)