Cabinet approved 100 per cent Foreign Direct Investment (FDI) in single-brand retail via automatic route. Currently, FDI, up to 100 per cent is allowed under the government approval route.
According to reports, Cabinet has also approved 100 per cent FDI through automatic route in aviation and construction sectors.
After opening of 100 per cent FDI in single brand retail in 2014, many global players like Ikea and others have entered the Indian market. The approval through automatic route will further quicken the FDI clearance process and many foreign players may now enter the Indian market due to less clearance process.
However, the big ticket FDI in multi-brand retail is still on hold due to opposition from different political parties and trade bodies.