Cabinet to consider relaxing FDI norms in single brand retail, digital media

  1. The Union Cabinet is considering proposal to relax foreign direct investment (FDI) norms in several sectors.
  2. The sectors include (a)single-brand retail (b)digital media (c)coal mining and (d)contract manufacturing.
  3. In the existing FDI policy,100% foreign direct investment is permitted in the manufacturing sector under the automatic route.But the policy does not talk about contract manufacturing. 
  4. Similarly,the government is looking at coming out with a clarification on the applicability of the foreign direct investment policy on the digital media sector.The present FDI policy is silent on the fast-growing digital media segment.
  5. In the single-brand retail sector,the Cabinet will consider a proposal for relaxing rules for complying with the mandatory 30% local sourcing norms by foreign single-brand retailers.
  6. According to the proposal,single-brand retail firms would also be permitted to open online stores before setting up brick-and-mortar shops.Currently,online sales by single-brand retail players is allowed only after the opening of physical outlets.
  7. In the coal mining sector,foreign players would be allowed to mine coal and sell it. Currently, FDI is permitted for captive coal mining only.