The central govt. has approved 100% Foreign Direct Investment (FDI) in single brand retail. With this, even real estate broking too is eligible for 100% FDI without govt. approval. The relaxed norms allow 100% FDI being allowed under automatic route. The 100% FDI will help more MNCs foraying into Indian arena, and has started off a serious debate among the opposition parties. Earlier, there was a cap of 49% FDI in single brand retail.
As per the new norms, MNCs no longer require sourcing 30% goods from India for the first five years of launching their services. On a similar note, govt. has also eased out the FDI in airlines. Govt. has approved an FDI of 49% in Air India.
