Relaxations in FDI Regulations

One more icing on the cake initiation for ease of doing business announced by Prime Minister Narendra Modi and Ministry of Finance on “Make in India” concept.

Today, Government announces comprehensive relaxations in many sectors of FDI regulations’, with major emphasis on allowing 100% FDI in single-brand retail & other varied areas. This decision shall make FDI norms in various sectors much more attractive destination for overseas investors.

The key segment of variation is the aviation sector, in which an Indian national now can acquire 51% of Air India and the remaining of 49% are for the Extraneous Investors, along with allowing 100% FDI in single-brand retail and in Real estate branding under automatic routes.

This is a step towards tremendous development in the Retail Sector of the Nation. Removal of significant stumbling block can cause delay for overseas retailers to meet 30% of local sourcing norms by five years and also such approvals for investments have been made automatic.

Prime Minister Narendra Modi, is expected to show case the Indian companies Investment potential in World’s Economic Forum, Davos. The relaxation in FDI norms at this moment will not only attract additional foreign capital, but will also provide a much needed drive to the retail and real estate sector growth, at a time when both sectors of the Indian industry is looking forward and various biggies of the retail are eyeing India as a potential and growing market.