Economy

Highlights: Government eases FDI rules for single brand retail; 100% foreign investment in contract manufacturing, coal mining

Updated : August 28, 2019 08:30 PM IST

The government on Wednesday relaxed FDI rule for foreign single-brand retailers and also permitted foreign investment in contract manufacturing and coal mining.

Also read: Big-ticket cabinet decisions: FDI norms relaxed

Briefing reporters on the decisions taken by the union cabinet headed by Prime Minister Narendra Modi, commerce and industry minister Piyush Goyal said 100 percent foreign direct investment (FDI) under automatic route in coal mining and associated infrastructure has been approved.

On FDI in single-brand retailing, the cabinet has expanded the definition of a mandatory 30 percent domestic sourcing norm.

100 percent FDI in contract manufacturing under automatic route has been allowed.

26 percent FDI has been allowed in digital media.

The government allowed single-brand retailers to start online sales, waiving the previous condition of setting up a mandatory brick-and-mortar store.

The Cabinet Committee on Economic Affairs (CCEA) approved setting up of 75 government medical colleges, to be attached with existing district or referral hospitals, by 2021-22.

The establishment of these medical colleges will add at least 15,700 MBBS seats in the country.

The medical colleges would be set up at an estimated cost of Rs 24,375 crore.

The government announced a Rs 6,268 crore subsidy for export of 6 million tonnes of sugar during the next marketing year starting October to offload surplus domestic stock and help mills clear huge sugarcane arrears of around Rs 15,000 crore.

(With inputs from agencies)

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