Wrap-up: FDI a done deal. Is GST next?
Boost for Apple stores
A significant change in local sourcing policy for single-brand retail trading could now enable US-based Apple Inc to open stores under new decisions which also cover broadcasting carriage services, private security agencies and animal husbandry.
The most important announcement made relates to civil aviation in which 100% FDI has now been allowed in airlines, except by foreign carriers. Norms for overseas investment have also been relaxed in brownfield airports.
The government has also permitted 100 per cent FDI under automatic route in several wings of the broadcasting carriage services which include teleports, direct-to-home, cable networks, mobile TV and headend-in-the sky broadcasting service.
In the defence sector, the policy has been tweaked to allow 100 per cent FDI by doing away with the condition of access to “state of the art” technology. It has now been modified to “modern or for other reasons”, a move that will widen the scope of investment by foreign players.
In order to promote manufacturing of food items, the government decided to permit 100 per cent FDI under approval route for trading, including through e-commerce in respect of such products manufactured or produced in India.
For the pharmaceuticals sector, the government relaxed the norms and permitted FDI up to 74 per cent through automatic route in brownfield projects and approval route beyond that limit to promote the development of this sector.