Government Announces 100% FDI In Single-Brand Retail

The Central Government has cleared approved 100 per cent FDI under the automatic route for single-brand retail trading. This move is supposed to be a move to boost the foreign retail brands. The announcement came along with the policy changes in key sectors including aviation, construction and power exchanges.
The government said the goal was to help the country attract larger FDI inflows that are expected to contribute to the growth of investment, income and employment in the country. The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to permit 100 per cent FDI under the automatic route for SBRT. The extant policy on SBRT allows 49 per cent FDI under the automatic route, and FDI beyond 49 percent and up to 100 percent through the government approval route.
The government has also decided to permit single-brand retail trading entity to set off it's incremental sourcing of goods from India forglobal operations during initial 5 years, beginning April 1 of the year of the opening of the first store against the mandatory sourcing requirement of 30 percent of purchases from India.