Cabinet approves 100% FDI in single-brand retail via automatic route

NEW DELHI:India announced sweeping relaxations in foreign direct investment (FDI) rules in single-brand retail and other areas besides allowing overseas carriers to acquire as much as 49% of Air India to help speed up its divestment. The moves came ahead of Prime Minister Narendra Modi s trip to the World Economic Forum in Davos where he is expected to showcase the country s investment potential. Overseas retailers can now delay having to meet the 30% local sourcing norm by five years removing a significant stumbling block. Approvals for such investments have also been made automatic. Single-brand retailers can set off incremental sourcing of goods from India for global operations during initial five years beginning April 1of the year of the opening of first store against the mandatory sourcing requirement of 30% of purchases from India . After five years the firm will have to meet the sourcing norm http://shopozoind.cabanova.com/ every year. Brands such as Uniqlo and Xiaomi that had applied to start singlebrand retail businesses may now get approval under the automatic route. The easing of the sourcing rules should help companies like H&M which started operations in India in 2015 and Ikea which plans a 2018 opening. They have been seeking such a relaxation. The cabinet also allowed overseas airlines to own up to 49% in Air India subject to conditions. The earlier policy allowed foreign airlines to own up to 49% in Indian carriers but excluded Air India. Experts Happy Traders Angry However the overall overseas investment limit will be 49% against 100% for other Indian carriers. Ownership and control of Air India will have to remain in the hands of Indian nationals the government said. Commerce and industry minister Suresh Prabhu said the government has decided to remove roadblocks to foreign investment. We hope it will facilitate faster development of the economy he said. It is a welcome move as it will save time that went into scrutinising and processing these applications said EY executive director Devraj Singh referring to the automatic approval route. The reform will boost India s attractiveness as an investment destination. The liberalisation in the single-brand retail trading sector is a progressive move in the direction of ease of doing business in India said Goldie Dhama partner regulatory PwC India. The Confederation of All India Traders opposed automatic approval saying it would hurt local stores. It will facilitate easy entry of MNCs in retail trade of India and will also violate the poll promise of BJP it said. The cabinet committee on economic affairs (CCEA) approved 100% FDI in real estate broking services and allowed foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) to invest in power exchanges through the primary market as well. It has been decided to clarify that real-estate broking service does not amount to real estate business and is therefore eligible for 100% FDI under automatic route the government said. In all sectors where FDI is allowed under the automatic route the new policy will also allow the issue of shares against non-cash considerations such as pre-incorporation expenses import of machinery etc under the automatic route. The Department of Industrial Policy and Promotion (DIPP) will process applications under the automatic route in cases where the investment is from a so-called country of concern from now on. Security clearance for such FDI proposals was earlier dealt with by the ministry of home affairs. For all proposals under the approval route requiring security clearance the administrative ministry concerned will process the application. The FDI policy for pharmaceuticals was amended to stipulate that the definition of a medical device would be that included in the policy. This was earlier subject to any amendment of the definition in the Drugs and Cosmetics Act. The changes cover audits as well. An FDI investor can ask for the audit of an investee company by a particular auditor or audit firm having an international network. In such cases there will be a joint audit where one of the auditors is not part of the network sought by the FDI investors.
BENGALURU | MUMBAI: Online retailers are anticipating a boost in overseas investments that will allow them to expand faster and in new categories but also increased competition after the Union Cabinet approved 100% foreign direct investment in single-brand retail through the automatic route. Online furniture retailer Urban Ladder which was recently granted a singlebrand licence expects to now be able to expand more smoothly into categories beyond furniture using foreign capital without having to seek the government s approval. But it also anticipates more competition from overseas entering the domestic market. There are a lot of singlebrand retailers who have wanted to foray into the Indian market said Urban Ladder chief executive Ashish Goel. This move will make it easier for them and invoke healthy competition in the market. Urban Ladder last raised Rs 102 crore in funding from Kalaari Capital SAIF Partners Steadview Capital and Sequoia Capital in February 2017. Until now only 49% FDI was allowed in single-brand retail via the automatic route and anything above that required government approval a tedious process. The move definitely impacts investor sentiment positively. With regulatory approvals easing the doors will open for a lot more of the foreign money to come in said Viraj Bahl CEO of Veeba Foods which makes and supplies its own brand of condiments to restaurants and fast-food chains. This will have a positive impact on investor outlook towards India especially on the private equity side (which will) rub off on the larger ecosystem too. Online jewellery retailer Bluestone too welcomed the cabinet s decision with CEO Gaurav Singh Kushwaha calling it a good step to promote consumerism. We can expect more activity by investors which will help consumer brands fight against the larger (fast-moving consumer goods) players. It will also give an impetus to consumerism he said. Veeba Foods last raised 6 million in October and Bluestone 30 million in July 2016 in funding led by IIFL Holdings and Accel Partners. Analysts see more direct and indirect benefits flowing in from the cabinet s decision even if it only meets half-way a long-pending demand of the industry. Permitting 100% FDI in single brand retail under the automatic route should generate employment and give Indian consumers access to several international brands said Aashish Kasad India region tax leader consumer products and retail EY India. (With inputs from Mugdha Variyar)
.story-content span .story-content p .story-content div color: #000 !important; font-family: open sans Arial !important; font-size: 15px !important; ALSO READ Investors shun real estate but lap up realty stocks Right time for NRIs to buy residential or commercial property in India Realty play: Qatar wealth fund Baring to exit RMZ Real estate to be one of fastest growing sectors in India: Pirojsha Godrej FDI norms tweaked in retail trading aviation: All you need to know span.p-content div id =div-gpt line-height: 0px; font-size: 0px; The Centre s decision to allow 100 per cent foreign direct investment (FDI) in real estate brokerages would not have any material impact said experts. Most property brokerage were owned by international firms and domestic ones were too small to get investments from abroad they said. Unless domestic brokers want some international partners it (the government notification) will not impact much said Shishir Baijal country head at Knight Frank. Wednesday s circular said: It has been decided to clarify that real estate broking service does not amount to real estate business and is therefore eligible for 100 per cent FDI under the automatic route. Amit Bhagat chief executive at ASK Property Investment Advisors said: It (real estate brokerages) is a service industry and big brokerages are already in that space. So today s decision will not have any significant impact on investments or job creation. Jones Lang LaSalle CBRE Cushman & Wakefield Colliers (US based) and UK-based Knight Frank are the major international property consultants in India.
NEW DELHI: At 86 the Maharaja is a hot bachelor for suitors from across the globe with an Indian connection thanks to the government s move to allow foreign airlines to be part owners of soon to be privatised Air India. The Tata-Singapore Airlines (SIA) JV Vistara and Jet Airways in which Abu Dhabi-based Etihad has 24% stake can now bid for the airline after this amendment. Vistara CEO Leslie Thng had last week said the airline s promoters had an open mind for AI if it made business sense. IndiGo which has given a formal expression of interest for the airline arm of the Maharaja can now tie up with a foreign airline to get the long-haul expertise and finances required to bid for AI. Doha-based Qatar Airways has long wanted to invest in IndiGo and more recently shown interest in having a domestic airline in India. Acquiring AI s flight operations needs solid financial muscle and then running it requires serious expertise in medium and longhaul operations from Day One. Combinations like Tata-SIA IndiGo with a big foreign airline and Jet with its multiple international airline partners can provide both those things. With the FDI policy for AI the government shows it is serious for divesting in AI said a senior airline official. Possible bidders like these were waiting for clarification on foreign airlines part-owning AI as last August the government had issued a consolidated foreign direct investment (FDI) policy which said that while foreign carriers can own up to 49% stake in Indian carriers this was not applicable to AI. The Modi government has brought AI on a par with private Indian airlines in terms of being eligible to be owned up to 49% by foreign airlines with the condition being that the desi carriers substantial ownership and control (SOEC) should remain with Indians and the local JV partner. Kapil Kaul of Centre for Asia Pacific Aviation feels that the Wednesday decision could lead to 4-6 serious bids for AI subject to bid conditions .
Written by Kanishka Singh | New Delhi | Updated: March 27 2017 4:41 pm Aadhaar card (Representational image) Related News Aadhaar Of InjusticeTMC to continue fight against Aadhaar: Derek O BrienAadhaar: Edward Snowden slams govt over FIR against Tribune reporterAadhaar is a 12-digit unique identification number issued to Indian citizens by the Central government. It is issued and managed by the Unique Identification Authority of India (UIDAI). Aadhaar card is essentially an identification document issued by the UIDAI after it records and verifies every resident Indian citizen s details including biometric and demographic data. Aadhaar is not meant to replace existing identification documents like PAN passport driving license etc. However it can be used as a single identification document. Banks financial institutions and telecom companies can also use it as a Know-Your-Customer (KYC) verification mode and maintain profiles. On March 27 the Supreme Court ordered that the government cannot be stopped from using Aadhaar identification for its non-welfare schemes like opening of bank accounts filing of tax returns verification of new and existing mobile phone numbers and user credentials etc. However it did maintain that the government cannot make Aadhaar mandatory for welfare schemes and it has allowed the government to use it in some schemes not permitted to be used as a mandatory requirement. Here is a list of recent announcements by the government where Aadhaar was made mandatory (both welfare and non-welfare schemes feature in the list): Beedi/Iron Ore/limestone workers need Aadhaar for availing house subsidy. Aadhaar mandatory for supplementary nutrition program. Deadline to register to avail benefits is March 31. Aadhaar compulsory for farmers wanting to take crop insurance benefit and people eligible for subsidised foodgrains/cash subsidy for the same. People need to register by March 31. People wishing to avail benefits of welfare schemes under Integrated Department of Horticulture National Apprenticeship Promotion Scheme and Janani Suraksha Yojana need mandatory Aadhaar. Aadhaar made mandatory to avail training under Integrated Child Development Services of the Ministry of Women and Child Development. Deadline to register is June 30. Aadhaar mandatory for benefits under Grih Kalyan Kendra scheme and the deadline set for registration is June 30. Aadhaar made mandatory for financial support under National Mission for Empowerment of Women. Same condition imposed for Scheme for Adolescent Women students to avail Central scholarship and financial support given under National Means-cum-Merit Scholarship. Deadline for registration is March 31. Aadhaar mandatory for e-panchayat training benefits and students who wish to avail central scholarships at the college level. Deadline to register is June 30. Soil Health Management Scheme and Soil Health Card Scheme require Aadhaar. Deadline is March 31. Supplementary meals at creches require Aadhaar. Deadline to register is March 31. Maternity Benefit Programme and Integrated Child Protection Scheme make Aadhaar mandatory. Deadline to register is March 31. Aadhaar made mandatory for women to avail vocational training loans and other schemes. Benefits for water and social services also come under the ambit of Aadhaar. Benefits under Research and Development in Water Sector and National Social Assistance Program announce Aadhaar as mandatory document. Deadline set is March 31 and April 1 respectively. Mid Day meal benefits require Aadhaar. Cooks-cum-helpers earning out of the scheme must also register with Aadhaar. Deadline set is June 30. Deendayal Antyodya Yojana and National Rural Livelihoods Mission also make Aadhaar mandatory. Aadhaar now mandatory for disabled children between 6-14 years and are eligible for benefits under Sarva Shiksha Abhiyan. Deadline to register is June 30. Aadhaar also made mandatory to book tickets on Indian Railways online ticket booking platform at IRCTC. Disabled students taking benefits under National Action Plan for Skill Training of Persons with Disabilities must register by June 30. Aadhaar also made mandatory for availing benefits under National Health Mission by trained female community health activist ASHA or Accredited Social Health Activist. Bhopal gas tragedy victims need Aadhar to avail compensation from government. Deadline set is June 30. National Awards Scheme for Technology Innovation in Petrochemicals and Downstream Plastics Processing Industry makes Aadhaar mandatory. Deadline for registration is March 31. Pradhan Mantri Ujjwala Yojana for women below poverty line requires Aadhaar (deadline set May 31). It is also made mandatory for compensation and benefits to people under Bonded Labour Rehabilitation Scheme. Deadline set is June 30. Aadhaar made mandatory to file Income Tax returns or applying for PAN. PAN will also need to be linked to Aadhaar. Any PAN card which is not linked to Aadhaar will become redundant after June 30. For all the latest What Is News download Indian Express App IE Online Media Services Pvt Ltd More Related News Govt muzzling dissent: Congress on FIR over alleged Aadhaar data breach FIR against Tribune reporter: Shatrughan Sinha asks are we living in a Banana Republic ? Tags: Aadhaar JJeevan KarkeraNov 12 2017 at 8:01 amMr. Modi has become a big headache for Mamta Banerjee Lalu Yadav Chidambaram and many more who worked very very hard for poor.(3)(0) Reply SS ABBASIOct 26 2017 at 1:27 pmis there any necessary be a indian for making the aadhar card(0)(0) Reply RReaderOct 9 2017 at 10:11 amA centralized and inter-linked biometric database like Aadhaar will lead to profiling and self-censorship endangering freedom. Personal data gathered under the Aadhaar program is prone to misuse and surveillance. Aadhaar project has created a vulnerability to identi-ty fraud even identi-ty theft. Easy harvesting of biometrics traits and publicly-available Aadhaar numbers increase the risk of impersonation especially online and banking fraud. Centralized databases can be hacked. Biometrics can be cloned copied and reused. Thus BIOMETRICS CAN BE FAKED. High-resolution cameras can capture your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. So another person can clone your fingerprints and iris images without your knowledge and the same can be used for authentication. If the Aadhaar scheme is NOT STOPPED by the Supreme Court the biometric features of Indians will soon be cloned misused and even traded.(5)(1) ReplyRReaderNov 10 2017 at 3:26 pmIf the biometric details of a person are COMPROMISED ONCE then even a new Aadhaar card will not help the person concerned. This is NOT like blocking an ATM card and taking a new one.(1)(0) Reply RReaderSep 25 2017 at 9:59 pmThe Supreme Court is yet to take a decision on the validity of Aadhaar and whether the State can compulsorily link Aadhaar to various programs and all financial transactions. On 24 August 2017 a nine-judge Consti-tution Bench of the Supreme Court ruled against the Central Government to declare that privacy is a fundamental right under the Consti-tution of India. The Supreme Court is set to hear peti-tions challenging the validity and other aspects of Aadhaar in the first week of November this year. So just wait for the verdict.(2)(0) Reply RReaderSep 25 2017 at 9:59 pmA centralized and inter-linked biometric database like Aadhaar will lead to profiling and self-censorship endangering freedom. Personal data gathered under the Aadhaar program is prone to misuse and surveillance. A centralized and interlinked database can lead to commercial abuse. Aadhaar project has created a vulnerability to identi-ty fraud even identi-ty theft. Easy harvesting of biometrics traits and publicly-available Aadhaar numbers increase the risk of impersonation especially online and banking fraud. Centralized databases can be hacked. Biometrics can be cloned copied and reused.(2)(0) ReplyRReaderOct 5 2017 at 5:06 amBiometrics can be cloned copied and reused. Thus BIOMETRICS CAN BE FAKED. High-resolution cameras can capture http://www.dance.net/u/kktata your fingerprints and iris information from a distance. Every eye hospital will have iris images of its patients. If someone gets a copy of your biometric data which can be used for authentication what would you do?(2)(0) Reply Load More Comments
Tools Increase Text Decrease Text Reset Text Print Article Tun Dr Mahathir Mohamad said those suspected of being corrupt will have their guilt or innocence determined by the courts in accordance with the country s laws. Picture by Yusof Mat Isa KUALA LUMPUR Jan 10 Pakatan Harapan (PH) will not seek revenge against corrupt politicians if the federal Opposition comes into power but will instead let the law run its course Tun Dr Mahathir Mohamad said today. Dr Mahathir a former prime minister who was last weekend declared as the four-party PH pact s prime minister-designate said those suspected of being corrupt will have their guilt or innocence determined by the courts in accordance with the country s laws. We will respect rule of law it is not our intention to take revenge on them we will hold on to rule of law. If the laws say those who steal have to be brought to court and the court will decide if it s true or not and deliver penalties that is our way. It is not our way to oppress certain people like now the 92-year-old said in his first-ever Policy Talk broadcast live on his official Facebook account this morning. Dr Mahathir was responding to a comment from a citizen who expressed hope that PH would ensure all ministers go through a forensic audit and seize all assets obtained through corruption and return them to Malaysians if it won federal power. Dr Mahathir also said PH would reject a corruption culture if it takes over Putrajaya. We will eradicate the culture of cash is king which legitimises bribery. Bribery is haram. It is our desire to reject what is haram and replace with what is halal he said. The words haram and halal in the Islamic context means forbidden and permissible respectively. Dr Mahathir criticised a number of policies and measures by the current administration including the annual cash handouts under the 1Malaysia People s Aid (BR1M) which he said was not adequate to help the low-income group cope with rising living costs. He criticised the federal government s move to help Malaysians cope with rising living costs through the increase of wages saying that the hike in civil servants pay and the hike in minimum wages that the private sector has to implement was instead backfiring. Living costs instead continue to rise due to the income hike as rising business costs drive up the prices of goods and services he said. In the same session Dr Mahathir said Malaysia should cut down its reliance on foreign labour claiming that the migrant workers were robbing Malaysians of job opportunities and would also cause an outflow of ringgit from the country due to their remittance of their wages to their home country. He said however that a PH government will find ways to solve problems faced by local industries that need migrant workers and hear out local businessman noting that the migrant workers would not be sent off in one sweep. He also said it was better for Malaysia to not have foreign direct investment that relies fully on migrant workers that would again send their wages home arguing that the country should instead choose foreign investments that would rely more on local labour that would be trained in fields such as IT. By being selective about foreign direct investments Malaysia would increase job opportunities and income levels for the locals and would also be able to control the outflow of the ringgit he said. This is the policy that should be used by us so Malaysia can get maximum returns from foreign direct investment Dr Mahathir said. ALSO READ CBSE Class 10 board checks to be  obligatory from 2018 CBSE releases practical examination schedule for class 10 12 board examination CBSE broadcasts Class 12 Compartmental Exam Results. Check it right here Like CBSE ICSE