After taking significant measures to facilitate Foreign Direct
Investment (FDI) in November 2015 and June 2016 and dismantling the
Foreign Investment Promotion Board (FIPB) earlier this year, the
Government of India seems to be moving towards further
liberalisation in certain important sectors. These sectors could
include construction, print media and retail trading.
The government has been facing challenges on job creation front,
hence there is likely to be greater thrust on more economic and
industrial activity including FDI liberalisation.
Multi-brand retailing has been a contentious sector so far with
respect to FDI rules. The government may eventually allow 100% FDI
in this sector with strict conditions like employment creation,
local sourcing norms, investment in setting up of infrastructure
and storage facilities (some of these are already in place even
with 51% cap on FDI). With FDI limit of 51%, a foreign investor is
forced to enter into a joint venture
