Sunday, January 19, 2025
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FDI comes into effect today

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New Delhi: Unfazed by opposition even from its own allies, government on Thursday went ahead implementing its decisions to allow FDI in multi-brand retail and liberalise foreign investment in aviation and broadcasting sectors.

On a day opposition parties enforced a nation-wide bandh in which allies SP and DMK participated, government came out with notifications implementing its reforms decisions taken last week.

Under the notification relating to FDI in multi-brand retail, multinational companies can invest up to 51 per cent The government also operationalised September 14 Cabinet decisions allow 49 per cent FDI by foreign airlines in the domestic carriers and relax sourcing norms for foreign retailers investing beyond 51 per cent in single-brand retail.

In the most controversial area of FDI in multi-brand, the the DIPP said the State Governments and UTs would be free to take their own decisions.

“Therefore, retail sales outlets may be set up in those States\UTs which have agreed, or agree in future, to allow FDI in MBRT (multi-brand retail trading) under this policy.”

Minimum amount to be brought in by the foreign investor would be USD 100 million and outlets may be set up only in cities with a population of more than 10 lakh.

 

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