The Union Cabinet today approved a proposal to allow 100 per cent FDI or foreign direct investment through automatic route in single brand retail. Currently, FDI up to 49 per cent is permitted under automatic route in single brand retail but beyond that limit, government nod is required. The Union Cabinet today reviewed foreign direct investment policy in certain sectors with a view to attract more overseas funds.
The relaxation of policy is aimed at providing a more investor-friendly climate to foreign players and in turn attract more FDI to boost economic growth and create jobs.
It also cleared 100 per cent FDI in construction development via automatic route.
FDI during April-September this fiscal year grew by 17 per cent to $25.35 billion. FDI into India increased by 9 per cent to $43.48 billion in 2016-17.
Foreign direct investment (FDI) is a major driver of economic growth and a source of non-debt finance for the economic development of the country. Government has put in place an investor friendly policy on FDI, under which FDI up to 100 percent, is permitted on the automatic route in most sectors/ activities.