DIPP notifies liberalisation of FDI policy in several sectors

Tribune News Service

New Delhi, November 24

The Department of Industrial Policy and Promotion (DIPP) has notified the recent liberalisation of FDI policy in several sectors, including retail and construction development sector.

The DIPP has also defined the term “manufacturing” for the purpose of attracting foreign direct investment (FDI).

The government had, in a recent decision, permitted a manufacturer to sell products made in India through wholesale and retail, including through e-commerce platforms without government approval.

The Press Note of the DIPP has defined the term “control” for the purpose of FDI in Limited Liability Partnerships (LLPs).

Press notes are official documents issued by DIPP through which new FDI policies or changes in existing ones come into effect.

The government had on November 10 opened up 15 sectors, including real estate, defence, civil aviation and news broadcasting in a bid to push reforms.

The DIPP, under the Commerce and Industry Ministry, has notified the liberalisation of the policy in plantation sectors. Foreign investment is now allowed in coffee, rubber, cardamom, palm oil tree and olive oil tree plantations and all sectors where FDI was not allowed.

In defence sector, 49% foreign investment is allowed through automatic route, the DIPP said. The FDI cap was increased in teleport, DTH, cable networks and mobile TV besides FDI limit was raised to 49% in up-linking of news and current affairs channels. It has also notified easing of the norms in construction development and single brand retail trading.