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ARTICLE · 17 JANUARY 2018

FDI Reforms In India: Government Committed Towards Ease Of Doing Business

Ahead of the Union Budget for next fiscal year, the Union Cabinet ("Cabinet") chaired by the Prime Minister Shri Narendra Modi met on January 10, 2018 to approve several amendments...

IndiaGovernment, Public Sector

Ahead of the Union Budget for next fiscal year, the Union Cabinet ("Cabinet") chaired by the Prime Minister Shri Narendra Modi met on January 10, 2018 to approve several amendments in the foreign direct investment policy of India ("FDI Policy"), which are expected to have a wide-ranging impact.

The key reforms include:

  1. FDI allowed in Single Brand Retail Trading ("SBRT") up to 100% under the automatic route.
  2. FDI by foreign airlines allowed in M/s Air India Limited ("Air India") under approval route, provided substantial ownership and effective control continue to be vested in Indian national.
  3. FIIs/FPIs to acquire shares in 'Power Exchanges' through primary market.
  4. Real-estate broking service has been clarified not to constitute a real-estate business and hence, FDI in such services is permitted up to 100% under automatic route.

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