New Delhi: In an effort to get economic growth back on track, a slew of decisions were taken by the Union Cabinet in its meeting on Wednesday, including further liberalizing of foreign direct investment (FDI) rules in four sectors.
The government approved foreign investment in digital media up to stakes of 26%, allowed 100% foreign investment for coal mining and contract manufacturing, and eased sourcing norms for single-brand retailers.
Briefing reporters on the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Commerce and Industry Minister Piyush Goyal said 100 per cent foreign direct investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.
"There is a little slowing down of FDI worldwide so we have taken some significant decisions. 100 percent FDI for coal mining and all related processing activities will be allowed under automatic route," announced Commerce Minister Piyush Goyal.
To boost domestic manufacturing, 100% FDI in contract manufacturing under automatic route has been allowed, he said, adding that 26% FDI has been allowed in digital media.
On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30% domestic sourcing norm. It also allowed single brand retailers to start online sales, waiving the previous condition of setting up a mandatory brick-and-mortar store, he said.
Domestic procurement for exports included in 30% local sourcing clause, announced Goyal.
"The Cabinet has also approved 75 new medical colleges, to be established by 2021-22, with ₹24,375-crore investment. This is a move to add 15,700 MBBS seats in the country," announced I&B Minister Prakash Javadekar.
The Cabinet approved biggest ever expansion of medical facilities in the world, said Javadekar.
Among other Cabinet decisions taken is that government will provide ₹6,268-crore subsidy towards exporting of 60 lakh metric tonnes of sugar. Subsidy to be directly transferred to farmer's account. India has 162 lakh tonnes of sugar stock, of which 40 lakh tonnes is buffer stock and 60 lakh tonnes will be exported.
The sugar export policy will aid in evacuation of surplus stocks during sugar season 2019-20, said Javadekar.
The Cabinet has also approved establishment of an International Coalition for Disaster Resilient Infrastructure (CDRI) and PM Modi will launch CDRI during UN Climate Summit in New York on 23 September, 2019, announced Javadekar.