Govt to review FDI policy on digital media, single brand retail, manufacturing, coal mining

Government said that the changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth.

New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for Review of Foreign Direct Investment on various sectors including coal mining, single brand retail, digital media and manufacturing sector.

“The changes in FDI policy will result in making India a more attractive FDI destination, leading to benefits of increased investments, employment and growth,” an official release said.

FDI in Digital Media

The government has decided to permit 26% FDI under government route for uploading/ streaming of News & Current Affairs through Digital Media, on the lines of print media. The extant FDI policy provides for 49% FDI under approval route in Up-linking of 'News &Current Affairs' TV Channels.

FDI in Coal Mining

The government has decided to permit 100% FDI under automatic route for sale of coal, for coal mining activities including associated processing infrastructure subject to provisions of Coal Mines (special provisions) Act, 2015 and the Mines and Minerals (development and regulation) Act, 1957 as amended from time to time, and other relevant acts on the subject.

As per the present FDI policy, 100% FDI under automatic route is allowed for coal & lignite mining for captive consumption by power projects, iron & steel and cement units and other eligible activities permitted under and subject to applicable laws and regulations.

FDI in Contract Manufacturing

Government has decided to allow 100% FDI under automatic route in contract manufacturing in India as well.  The extant FDI policy provides for 100% FDI under automatic route in manufacturing sector. There is no specific provision for Contract Manufacturing in the Policy.

FDI in Single Brand Retail Trading (SBRT)

Government has decided that retail trading through online trade can also be undertaken prior to opening of brick and mortar stores, subject to the condition that the entity opens brick and mortar stores within 2 years from date of start of online retail. Online sales will lead to creation of jobs in logistics, digital payments, customer care, training and product skilling.