India eases FDI rules for growth

new delhi — In big bang reforms ahead of the government’s last full budget, the cabinet on Wednesday allowed foreign airlines to buy up to 49 per cent stake in Air India while easing FDI rules for several sectors, including single brand retail and construction.

In a bid to boost growth and improve ease of doing business, the Narendra Modi government allowed 100 per cent foreign direct investment (FDI) in single brand retail and construction development under the automatic route.

It permitted foreign airlines to invest up to 49 per cent under the approval route in the debtridden, loss making national carrier, said an official statement issued after the cabinet meeting chaired by Modi.

The cabinet also allowed foreign institutional and portfolio investors to invest in power exchanges and relaxed FDI policy for medical devices and audit firms associated with companies receiving overseas funds.

Besides, the clarification that real estate broking service will not amount to real estate business has addressed the issue being faced by such firms. It is, therefore, eligible for 100 per cent FDI under the automatic route.

The decisions came ahead of Modi’s participation in the World Economic Forum at Davos this month where he is likely to hardsell India as an attractive investment destination. — PTI