Cabinet clears FDI policy for more investments, jobs

The government took radical changes for promotion of food products manufactured or produced in the country by allowing 100 per cent FDI under automatic route for trading, including through e-commerce, an official statement said. FDI in defence above 49 per cent was permitted through the government approval on case-to-case basis, wherever it is likely to result in access to modern and the ‘state-ofart’ technology. 

Now, the foreign investment beyond 49 per cent has been permitted through government approval route wherever it is likely to result in access to modern technology or for other reasons to be recorded. In pharmaceutical sector, the earlier policy in the sector used to provide 100 per cent FDI under automatic route in greenfield pharma and FDI up to 100 per cent under government approval in brownfield pharma. 

With the objective of promoting the development of this sector, 74 per cent FDI under automatic route has been permitted in brownfield pharmaceuticals. FDI beyond 74 per cent would be permitted through government approval route.

As per the earlier policy, foreign investment up to 49 per cent was allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. This limit has now been raised to 100 per cent with FDI upto 49 per cent permitted under automatic route and FDI beyond 49 per cent through government approval. For NRIs, 100 per cent FDI will continue to be allowed under automatic route.