- Moves a bid to become part of global supply chain amid trade war disruptions
- All procurements made from India by an entity for a single brand will now be counted towards local sourcing of 30%
The Union cabinet cleared a raft of changes in foreign direct investment (FDI) regulations, including easing rules for overseas single-brand stores and permitting FDI through the automatic route in contract manufacturing and all areas of coal mining.
“The changes in FDI policy will result in making India a more attractive destination, leading to benefits of increased investments, employment and growth,” a cabinet statement said on Wednesday.
The Indian economy had decelerated to a five-year low of 5.8% in the March quarter, while high-frequency indicators, including automobile sales, have signalled a consumption slump.
Most analysts expect the economy to slow down further in the June quarter, GDP data for which will be released on Friday. Last week, finance minister Nirmala Sitharaman announced a number of measures to boost investor sentiment and spur economic growth.
Source: Livemint
