The Centre on Wenesday relaxed FDI rule for foreign single brand retailers and also permitted foreign investment in contract manufacturing and coal mining.
Claiming the last financial year has witnessed the largest FDI inflow, Commerce and Industry Minister Piyush Goyal said, "FDI regulations have been liberalised. FDI regime has been simplified. This will also boost employment for the youth. We see an opportunity to make India a manufacturing hub."
Briefing reporters on the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Goyal said 100 per cent foreign direct investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.
To boost domestic manufacturing, 100 per cent FDI in contract manufacturing under automatic route has been allowed, he said, adding that 26 per cent FDI has been allowed in digital media.
On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30 per cent domestic sourcing norm. It also allowed single brand retailers to start online sales, waiving the previous condition of setting up a mandatory brick-and-mortar store, he said.
