DIPP notifies easing of FDI policy in several sectors
The government had on 10 November opened up 15 sectors including real estate, defence, civil aviation and news broadcasting
New Delhi: The Department of Industrial Policy and Promotion on Tuesday notified the recent liberalization of foreign direct investment (FDI) policy in several sectors including defence, retail and construction development sector. The DIPP has also defined the term “manufacturing” for attracting FDI. In a recent decision, the government has permitted a manufacturer to sell products made in India through wholesale, retail including through e-commerce platforms without government approval.
The press note of the DIPP has defined the term “control” for the purpose of FDI in limited liability partnerships (LLPs). Press notes are official documents issued by DIPP through which the new FDI policies or changes in existing ones come into effect. Unveiling sweeping liberalization of foreign investment norms, the government had on 10 November opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms.
DIPP, under the commerce and industry ministry, has notified the liberalization of the policy in plantation sectors. Foreign investment is now allowed in coffee, rubber, cardamom, palm oil tree and olive oil tree plantations. Earlier FDI was prohibited in these sectors. In the defence sector, 49% foreign investment is allowed through automatic route, the press note said.
Similarly, FDI cap was increased in teleport, DTH, cable networks and mobile TV besides FDI limit was raised to 49% in up-linking of news and current affairs channels. “In the I&B (information and broadcasting) sector where the sectoral cap is up to 49%, the company would need to be owned and controlled by resident Indian citizens and Indian companies, which are owned and controlled by resident Indian citizens,” it said.
Foreign investment cap in non-scheduled air transport service was increased to 100% through automatic route. DIPP has also notified easing of the norms in construction development and single brand retail trading.
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First Published:24 Nov 2015, 04:16 PM IST
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