The Union Cabinet on 28th August, 2019 in its press conference has eased FDI Norms for coal mining, digital media, contract manufacturing and single brand retail sectors.
Major Impact and Benefits from FDI Policy Reform
- 100% FDI has been allowed in coal mining sector through automatic route. 100% FDI is allowed for sale of coal, for coal mining activities including associated processing infrastructure.
- 100% FDI has been permitted in contract Manufacturing.
- In FDI in single brand retailing, the government has expanded the definition of mandatory 30 per cent local sourcing norm. Currently, the policy provides that only a part of the global sourcing shall be counted towards local sourcing requirement, which is over and above the previous year’s value. It has been now decided that entire sourcing from India for global operations shall be considered towards local sourcing requirement.
- The restriction on SBRT entities to operate through brick and mortar stores before starting retail trading of that brand through e-commerce, has been lifted. Retail trading through online trade can also be undertaken prior to opening of brick and mortar stores, subject to the condition that the entity opens brick and mortar stores within 2 years from date of start of online retail.
- 26% FDI has been permitted under government route for uploading/ streaming of News & Current Affairs through Digital Media, on the lines of print media.
Click here to see press release.
