Changes in FDI Policy

The Union Cabinet has introduced 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.

Contract Manufacturing

• 100% FDI under automatic route. Earlier only 100% in manufacturing; no specific provision for contract manufacturing.
• What it means: Provides clarity; 100% FDI for third-party manufacturers.

Coal

• 100% FDI in commercial mining & related investments. Earlier 100% FDI in coal mining for captive consumption only.
• What it means: Boost for private miners; competition for Coal India.

Single-Brand Retail

• Relaxation in 30% local souring condition.
• What it Means: More attractive for single-brand retailers.