Relaxations are also made on FDI on medical devices and firms receiving foreign investments. It has said that allowing 49% foreign investment is not the best of the solutions for ending the troubles with the National Carrier.
While India has seen its economy slowing recently, it has managed to secure a lot of foreign capital even without the new opportunities in place for entrepreneurs from overseas. The sudden changes may help India's rank for ease of doing business go up a few notches and cash inflows may make things look better, but what about the resultant and adverse consequences in the long term for the unprotected Indian domestic market?
Until now, foreign direct investment (FDI) of up to 49 percent was permitted in both sectors, but government approval was required beyond that.
Regarding the liberalisation in the construction development segment, the government has chose to clarify that real estate broking service does not amount to real estate business and is therefore, eligible for 100 per cent FDI under automatic route. It is therefore, eligible for 100 per cent FDI under the automatic route. "In turn, it will lead to larger FDI inflows contributing to growth of investment, income and employment", said an official statement.
The decisions came ahead of Modis participation in World Economic Forum at Davos this month where he is likely to hard sell India as an attractive investment destination.
Air India had a total debt of about Rs 48,877 crore at the end of March 2017, of which about Rs 17,360 crore was aircraft loan, and Rs 31,517 crore for working capital.
Single-brand retail has been open to 100% FDI since 2011; the main draw for investors will be multi-brand retail-this has been pending due to a fear of retaliation from kirana store owners.
Even while acknowledging that changes in FDI policy should not be equated with big reforms - that description should be reserved for such changes as fundamentally reshaping agricultural or labour markets - this criticism is a tad unfair.