Cabinet today 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.
At present, FDI up to 49 per cent is allowed under automatic route but any investment beyond the limit required government approval.
The approval through automatic route is aimed in future quickening the FDI clearance process and many foreign players may now enter the Indian market that’s the advantage.
In a statement here, CAIT, said “100 per cent FDI in single brand retail through the automatic route will facilitate easy entry of MNCs in the retail trade and also violate the poll promise of the BJP.” Terming it as a “serious matter for small businesses”, the trade body claims the move will hamper the welfare, upgradation and modernisation of existing retail trade.>