In major decisions to liberalise Foreign Domestic Investment (FDI) norms to boost investment, the Union Cabinet on Wednesday approved 100 per cent FDI in coal mining and contract manufacturing through automatic route.
The meeting also liberalised sourcing norms concerning single-brand retail and allowed 26 per cent FDI in the digital media with government approval. Briefing the media on the decisions of the Cabinet, Commerce and Industry Minister Piyush Goyal said the decisions have been taken to make the country an attractive destination for FDI.
He said that presently 100 per cent FDI is allowed in coal mining for captive production.
“Now 100 per cent FDI through automatic route will be allowed in coal mining and associated infrastructure including processing, washing, and thrashing,” he said.
The minister said that the government was keen to make India a manufacturing hub. He said due to change in the global environment, many people were wanting to manufacture goods in India but there were some difficulties.
“It has been decided to allow 100 per cent contract manufacturing through the automatic route,” added Goyal.
He said the government has already allowed 26 per cent FDI in print media and now has been decided to “allow 26 per cent FDI in digital media” with the approval of the government.
He said the condition to start brick and mortar stores has been relaxed for ease of operations and companies have been allowed to start online trading initially and start the stores later. (ANI)