The Department for Promotion of Industry and Internal Trade (DPIIT), under the commerce and industry ministry, has notified the recent decisions on liberalising foreign direct investment (FDI) regulations in single brand retail trading, coal mining and contract manufacturing. It has also notified the decision to allow 26 percent FDI in digital media, a move over which certain industry and experts have raised issues.
According to the DPIIT, 100 percent FDI is allowed for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957. Amending FDI norms for the manufacturing sector, it said foreign investment in 'manufacturing' sector is under automatic route. It added that manufacturing activities may be either self-manufacturing by the investee entity or contract manufacturing in India through a legally tenable contract, whether on principal to principal or principal to agent basis.
For single brand retail trading, the Department said retail trading through e-commerce can also be undertaken prior to opening of brick and mortar stores, subject to the condition that the company opens brick and mortar stores within two years from date of start of online retail. It added that a single brand retail company with FDI selling Indian brands now will not have to follow the condition that such firm should sell products under the same brand internationally.