New Delhi
Other sectors where FDI rules would be eased are coal and contract manufacturing. As per sources, the Union Cabinet would soon consider these issues for approval. The Centre may allow 100 pc FDI in contract manufacturing, as per the proposal. In the existing foreign investment policy, 100 pc foreign direct investment is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without the government’s approval. But the policy does not talk about the contract manufacturing and it is not clearly defined in the policy. “Big technology firms across the world are going for this, so there is a need for clarification on the matter,” they said.
Similarly, the government is looking at coming out with a clarification on applicability of the foreign direct investment policy on the digital media sector. The present FDI policy is silent on the fast-growing digital media segment.
In the print media, 26 pc FDI is allowed through Central approval route. Similarly, 49 pc FDI is permitted in broadcasting content services through Central approval route.
In the single-brand retail sector, the cabinet will consider a proposal of relaxing rules for complying with the mandatory 30 pc local sourcing norms by foreign single-brand retailers. As per the proposal, single-brand retail firms would also be permitted to open online stores before setting up brick-and-mortar shops. Currently, online sale by a single-brand retail player is allowed only after the opening of physical outlets. Relaxations are expected in a provision where foreign retail traders are presently allowed to adjust procurement of goods from India for their global operations for meeting the mandatory local sourcing requirement.
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