ALSO READCabinet allows foreign airlines to buy up to 49% stake in Air India India allows 100 percent FDI in single-brand retail via automatic route Cabinet tweaks AI's FDI norms to pull in foreign buyers Cabinet may review FDI policy in certain sectors tomorrow CAIT opposes 100% FDI in single brand retail via automatic
The decision to relax FDI norms in sectors like single brand retail would lead to further increase in foreign investment inflows, industry body CII today said. Chandrajit Banerjee, Director General, CII said: "India continues to attract high levels of foreign direct investment. Today's announcement includes multiple measures targeted at specific sectors where opportunities exist". He also said that the decision to permit foreign airlines to invest up to 49 per cent in Air India is expected to bring some capital to support a turnaround in the national carrier. In big bang FDI reforms ahead of the Budget, the government today permitted foreign airlines to invest up to 49 per cent in debt-ridden Air India, and eased norms for investment in single brand retail, construction and power exchanges. In a separate statement, Rajat Wahi, Partner, Deloitte India, said the move will not only attract additional foreign capital, but will also provide an impetus to the retail industry growth, at a time when organised and retail sector is already seeing a strong growth over the last 12 months. "Global brands across different categories, from apparel to electronics to accessories will be aided through this, providing further options to Indian consumers and improving India's ranking in ease of doing business," he added.