India’s Department for Promotion of Industry and Internal Trade, DPIIT, has notified the opening up in more sectors for foreign direct investment. These sectors are single-brand retail trading, contract manufacturing and coal mining. The DPIIT also stated that 26 per cent foreign direct investment will be allowed in digital media. Such investment in print media is already capped at 26 per cent and in TV news at 49 per cent. All these decisions are aimed at increasing economic growth, which has been affected by the COVID-19 pandemic.
Foreign entities can now invest up to 100 per cent in the coal industry for mining and sale of coal under the automatic route. They will also be entitled to carry out processing infrastructure operations such as coal washery, crushing, coal handling, and separation of magnetic and non-magnetic coal.
Full 100 per cent foreign direct investment is henceforth permitted for contract manufacturing, a DPIIT notification said.
Foreign entities intending to engage in single brand retail trading in India may do so through e-commerce prior to opening of their own stores, provided the company opens brick and mortar stores within two years from date of starting such online retail.