{"id":2150,"date":"2019-08-29T17:06:32","date_gmt":"2019-08-29T11:36:32","guid":{"rendered":"https:\/\/www.classiciasacademy.com\/blog\/?p=2150"},"modified":"2024-06-06T15:28:52","modified_gmt":"2024-06-06T09:58:52","slug":"fdi-norms-in-many-sectors-eased","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/fdi-norms-in-many-sectors-eased\/","title":{"rendered":"FDI Norms In Many Sectors Eased"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">In News <\/h4>\n\n\n\n<p>The Union Cabinet has set the ball rolling for the\nnext set of reforms by easing FDI rules in many sectors.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">In-Detail <\/h4>\n\n\n\n<ul>\n<li>At a time when\nthe world is in the grip of the US-China trade war, India which is reeling\nunder economic slow down is trying to get the crucial Foreign Direct\nInvestments (FDI) into the country.<\/li>\n\n\n\n<li>The Union Cabinet\nhas eased FDI rules for many sectors offering an automatic route for\ninvestments, easing local sourcing norms for single-brand retail companies.<\/li>\n\n\n\n<li>While the current\nnorms call on single-brand retail companies with more than 51% FDI to source\n30% of their goods locally, the new norms allow companies to <strong>calculate this\n30% sourcing over first five years period of operation.<\/strong><\/li>\n\n\n\n<li>Also, sourcing\nfor exports will also count as local sourcing.<\/li>\n\n\n\n<li>The decision will\nbenefit companies like Apple which is looking to set up its own chain of stores\nin the country. <\/li>\n\n\n\n<li>Under the current\nnorms, 100% FDI in the manufacturing sector is allowed but there is no specific\npolicy towards contract manufacturing. The new norms allow for <strong>100% FDI in\ncontract manufacturing. <\/strong>This will boost domestic manufacturing. <\/li>\n\n\n\n<li>The Cabinet also\nallowed 100% FDI under automatic route in coal mining, sale of coal and\nassociated infrastructure activities such as washery, crushing, and coal\nhandling. This is to attract international players into the sector and create a\ncompetitive environment. <\/li>\n\n\n\n<li>Currently, 100%\nFDI is allowed in coal and lignite mining for captive consumption only.<\/li>\n\n\n\n<li>Experts believe\nthat the move in allowing FDI in coal selling and its associated infrastructure\nis a good move and the policy will reap benefits in 4-5 years time if the\ngovernment begins the auction of coal mines now. <\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Conclusion <\/h4>\n\n\n\n<p>With the new norms, the government has also enhanced the ease of doing business in the country especially for single-brand retails enterprises. Big global names like Apple have not opened their retail outlets owing to the local sourcing norms. Now this will change and huge FDI is expected from global single-brand retail giants. <\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>In News The Union Cabinet has set the ball rolling for the next set of reforms by easing FDI rules in many sectors. In-Detail Conclusion <a class=\"mh-excerpt-more\" href=\"https:\/\/www.classiciasacademy.com\/blog\/fdi-norms-in-many-sectors-eased\/\" title=\"FDI Norms In Many Sectors Eased\">    [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":2151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>FDI Norms In Many Sectors Eased - UPSC Current Affairs<\/title>\n<meta name=\"description\" content=\"FDI Norms In Many Sectors Eased - The Union Cabinet has set the ball rolling for the next set of reforms by easing FDI rules in many sectors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.classiciasacademy.com\/blog\/fdi-norms-in-many-sectors-eased\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FDI Norms In Many Sectors Eased - 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