Get All Access for $5/mo

3 Areas To Be Privileged After Government Unfurls Red Carpet For FDI Union Cabinet has opened doors for foreign investors to create employment opportunities in various sectors and stabilizing Indian economy through FDI influx

By Vinayak Sharma

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

dnaindia

The Union Cabinet has approved easing the foreign direct investment norms for various sectors to attract foreign investors. The Cabinet in its meeting related to economy decided to relieve foreign investment in coal mining and related infrastructure, contract manufacturing, single-brand retail and digital media.

"The changes in FDI policy will result in making India a more attractive FDI destination. These updates in FDI norms will assist companies from all over the globe to look for alternative manufacturing hubs and help create a large number of jobs" said Commerce and Industry Minister, Piyush Goyal

In a recent meeting conducted by Finance Minister Nirmala Sitharaman, mentioned to announce more measures to boost the economy in the coming weeks. According to the reports given, the next package along with the FDI investors may be announced for the infra sector.

"The government will spend a sufficient amount of money in infra sector. Spending on infra is the priority of the government and will be applied soon to boost our economy ahead" said FM Sitharaman.

Areas to be benefited with the ease in FDI norms

Digital Media:

With the arrival of new FDI transformed norms, Indian digital media receives 26% FDI for its growth. Although some digital media organisation do not fulfil the demands of FDI investors, but rest, are liable to fall under the category to receive 26% FDI. Until now, there was no separate category as digital media for the FDI purpose. But now, distinct from print and broadcast media, digital media is a whole another category to receive this benefit. However, few media industrialists reacted differently to the decision as present FDI in various digital platforms are at different levels. Some digital media companies have 100 per cent FDI, while some others are restricted to 49 per cent.

Contract Manufacturers:

According to the Commerce Minister, Several companies seek to approach large scale manufacturers for contractual manufacturing which is cost effective, good for economy, scales and assists in up gradation of technology. DI norms did not allow foreign investment to such contract manufacturer so far. Now any contract manufacturer, big or small, will get 100 per cent FDI. Due to ongoing trouble all over the globe, various companies are expecting to set up their manufacturing units. Now, after liberalising FDI, these steps would help with ease of doing business, influx of foreign investment will increase, and FDI regime will be simplified. It will boost the employment for youth of the country.

Single Brand Retail:

The Union Cabinet has decided to bring Single Brand Retail sector under the relaxed norms of FDI. However, it would be responsible for employment boost. It is one of the biggest pillars of Indian economy which serves over 10% of its GDP.

Vinayak Sharma

Entrepreneur Staff

Correspondent, Entrepreneur India

News and Trends

Noida International Airport Partners with Mahindra Logistics for Premium All-Electric Taxi Service

Passengers will have the flexibility to book rides through multiple platforms, including a dedicated mobile app, the NIA website, call centers, airport kiosks, and airline alliances. This multi-channel approach ensures 24/7 accessibility, catering to the diverse needs of travelers.

News and Trends

K12 Techno Services Secures USD 40 Mn in Funding from Kenro Capital

The Bengaluru-based firm aims to expand aggressively, with plans to open 8–12 Orchids schools annually and onboard 100–150 schools under the Eduvate umbrella each year.

News and Trends

RapidCanvas Raises USD 16 Mn to Accelerate AI Innovation in Business Operations

The new capital will fuel the expansion of its innovative offerings and global reach.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business Ideas

87 Service Business Ideas to Start Today

Get started in this growing industry, with options that range from IT consulting to childcare.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.