New Delhi, Jan 10: The Union Cabinet approved 100 per cent foreign direct investmentin single brand retail sector; it also approved 49 per cent foreign investment cap in the beleaguered national carrier, Air India.
Apart from single brand retail, the Cabinet also approved 100 per cent FDI in construction development through automatic route. The FDI will be allowed though approval route in Air India.
The decision means that foreign airlines will be able to buy upto 49 per cent stakes in Air India. Foreign single brand retail chains will be allowed to set up their stores in India.
“The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, has given its approval to a number of amendments in the FDI Policy. These are intended to liberalise and simplify the FDI policy so as to provide ease of doing business in the country. In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment,” the government release read.