INSUBCONTINENT EXCLUSIVE:
Single-brand retailers will be allowed to open online stores bore setting up brick-and-mortar stores
In its bid to push investments and revive growth, the Union Cabinet on Wednesday eased FDI or foreign direct investment norms in four
Allowing 100 per cent foreign investment in coal mining as well as contract manufacturing, the government also removed restrictions that
made it difficult for foreign brands to conduct business in the country
Analysts say the relaxation of FDI norms is a positive move for global giants such as Apple and IKEA, which are likely to find India a more
The move comes days after the government announced a slew of measures - including a reversal of higher taxes on foreign investors announced
in Budget - to push growth, as it aims to make the country a $5-trillion economy in five years
Here are 10 things to know:In order to push single brand retailers to invest in the country, the government decided to relax
sourcing norms for single-brand retailers
Now, single-brand retail firms will be allowed to open online stores bore setting up brick-and-mortar stores
Existing rules forced single-brand retailers to set up brick-and-mortar stores in order to sell products online.Some say the new norms will
encourage foreign brands to capitalise on the Indian market
"This is excellent news for foreign retailers giants like IKEA and Apple who will now find Indian market more lucrative to invest and
conduct business in," said Shobhit Agarwal, managing director and CEO of realty services company ANAROCK Capital
"Many foreign brands have been in a wait-and-watch mode on account of the difficulties so far perceived in meeting the mandated sourcing
norms."In August last year, Swedish furniture retailer IKEA opened its first Indian store in Hyderabad, five years after it received
regulatory nod to invest Rs 10,500 crore and open 25 stores in the country by 2025.iPhone maker Apple on Thursday said it looks forward to
welcoming customers at its first branded retail store in India soon
The Cupertino-based iPhone maker said it appreciates the support and hard work done by Prime Minister Narendra Modi -- on the path to make
India one of the world's greatest economies.The new rules also remove restrictions on single-brand retailers that forced them to source 30
per cent of their products locally
The US-based tech major had been lobbying against the rules for years.The government also permitted 100 per cent FDI in the coal mining
sector and related infrastructure via automatic route, in order to "attract international players to create an efficient and competitive
Till now, FDI was only allowed in coal mines allotted for captive use, meaning for use by the companies themselves.Currently, a majority of
the country's coal requirement is fulfilled by Coal India
The new mining investment policy will to open up investment avenues for companies such as US-based PeaBody, Switzerland-based Glencore and
Australia's BHP Group.In a move to push for Make in India, the Cabinet decided to permit 100 per cent FDI via automatic route in contract
The initiative will help India compete as a manufacturing hub with Asian peers, say analysts.The government also allowed 26 per cent
overseas investment in digital media companies with its approval for uploading and streaming of news and current affairs, on the lines of
print media.Economists say the FDI changes will drive consumption and investments
"FDI liberalization can supplement overall investment in the country and is hence useful
However, FDI has limitations when linked with economic growth as it is a very small part of overall investment," Madan Sabnavis, chief
economist at credit ratings agency CARE Ratings, told TheIndianSubcontinent.Get Breaking news, live coverage, and Latest News from India and
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