You are here: Home » PTI Stories » National » News
Business Standard

Govt mulls FDI norms easing in print media,construction,retail

Press Trust of India  |  New Delhi 

The is moving ahead with further opening of print media, construction and retail sectors to foreign investments, and detailed deliberations in this regard were held in the ministry today. The commerce and industry ministry may soon approach the Union Cabinet to get the final approval on the proposals, sources said. According to them, the is considering to relax foreign direct investment (FDI) norms in certain areas of print media. Currently, foreign investment is allowed in areas such as printing of newspapers and publishing of scientific magazines with certain conditions and caps. The may also permit overseas retailers to open wholly-owned stores for selling 'Made in India' products only. Besides, it is considering to allow retail stores, which would attract FDI, to sell domestically manufactured personal and home care products up to 25 per cent of their total turnover, a demand which has been strongly pitched by Union Food Processing Minister Harsimrat Kaur Badal. Badal has time and again asked to permit in non-food items, along with food products, under the multi-brand retail policy. There is also a proposal to ease the policy in construction and development sector, under which an Indian company could be allowed to bring even for undeveloped plots in any project. Currently, 100 per cent is allowed in the construction sector subject to various conditions. One of the norms is that the Indian investee company is permitted to sell only developed plots, which means plots where trunk infrastructure - roads, water supply, street lighting, drainage and sewerage, have been made available. Sources said the may put certain restrictions while making changes in this condition. The whole exercise is aimed at providing investor friendly climate to foreign players and in turn attract more to boost economic growth and create jobs. The is also mulling easing policy in single brand retail trading, under which 100 per cent would be allowed through automatic route with certain conditions. Currently, up to 49 per cent is permitted under the automatic route but beyond that limit, government's nod is required. The easing of the policy will be on the lines of the announcements made by Minister Arun Jaitley in the Budget for 2017-18. The last year relaxed norms in over a dozen sectors, including defence, civil aviation, construction and development, private security agencies, real estate and broadcasting. Foreign are considered crucial for India, which needs around USD 1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth. Foreign will help improve the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 17 2017. 22:02 IST