In a major reform measure, the government on Tuesday opened up the retail sector to foreign direct investment and liberalised the FDI regime in more sectors.
In a cabinet decision, FDI in retail has been allowed up to 51 percent in single brands like Reebok and Louis Vuitton.
Besides retail, the sectors in which FDI regime has been liberalised are power trading, processing and warehousing of rubber and coffee, diamond and coal mining, airports and petroleum infrastructure like laying of pipelines, sources told PTI.
In these sectors, FDI up to 100 percent would be allowed through the automatic route as recommended by the Group of Ministers on FDI.
The GoM, headed by Agriculture Minister Sharad Pawar, had met earlier this month and finalised its suggestions on the review of existing FDI policy, sources said.
The idea of opening up more sectors to FDI is to attract more foreign capital by reducing the levels of control in most sectors of the economy, officials said.
Currently single-brand retailers operate through the franchisee route and there is a strong view that FDI in this segment would not displace jobs or impact the local industry but help create employment.
The cabinet also approved doing away with approvals for foreign investments from multiple agencies, particularly in banking and insurance.
© 2026