INSUBCONTINENT EXCLUSIVE:
liberalising of foreign direct investment (FDI) rules in four sectors, in an effort to get economic growth back on track.The government
approved foreign investment in digital media up to stakes of 26 per cent, allowed 100 per cent foreign investment for coal mining,
associated infrastructure and sales of fuel.Till now, foreign investment was only allowed in coal mines allotted for captive use, meaning
for use by the companies themselves.The new mining investment policy will to open up investment avenues for companies like PeaBody, Glencore
and BHP Group Ltd.The government also allowed 100 per cent foreign direct investment in contract manufacturing and eased sourcing norms for
single-brand retailers.The government said single-brand retail firms would be permitted to open online stores before setting up
bricks-and-mortar stores, making it easier for firms like Apple Inc, which do not operate retail stores in the country, to start selling
their products online.Lack of investment was partly responsible for the country's relatively sluggish economic growth of 5.8 per cent in
the January-March quarter
Analysts predict a slower growth rate for April-June, data on which is expected to be released on Friday.Last week, Finance Minister Nirmala
Sitharaman proposed a series of measures to help the economy and financial markets, and earlier this week the central bank said it would
transfer nearly $21 billion in dividends, 64 per cent more than expected, which could be used to further stimulate the economy."Liberalising
foreign direct investment will help in increasing economic growth" Piyush Goyal, commerce and railways minister, told reporters in New
Delhi.Presenting the annual budget for 2019/20 in July, Finance Minister Nirmala Sitharaman had said the government would hold discussions
with stakeholders to relax FDI rules in the aviation, media, animation and insurance sectors, and ease rules for single-brand retailers."The
FDI relaxations fulfils long standing reforms sought by many companies that wanted to set up shop in India
Particularly, easing local sourcing norms and contract manufacturing will help us compete with manufacturing hubs in South and south east
Asia," said Vaibhav Kakkar, partner at a law firm L-L Partners.Get Breaking news, live coverage, and Latest News from India and around the
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