By IANS,
Key features and implication of the government’s Friday decision of allowing Foreign Direct Investment (FDI) in multi-brand retail and aviation sectors.
FDI in multi-brand retail
–51 percent FDI allowed in multi-brand retail
–States given discretionary powers of opting for it or not
–Government expects to generate funds, jobs and stimulus for economy
–Government also expects to tame inflation from the move
–Farmers expected to get healthy returns for produce
–Less agriculture wastage due to the decision
–Consumer to benefit with more choices and competitive prices
–Foreign brands like Wal-Mart, Tesco and Carrefour eying to enter India
–$450 billion retail market in India
FDI in single-brand retail
–100 percent single brand FDI allowed
–30 percent local sourcing mandatory
FDI in aviation
–Foreign carriers can now pick up 49 percent stake in India airlines
–Airlines like Kingfisher and SpiceJet keen on foreign funds
— With India one of the fastest growing aviation markets in the world, airlines can gain international technical assistance and expertise
–Transactions will be governed by SEBI norms
–Key positions in the airline will be held by Indian citizens
–Foreign nationals and equipment under the stake sale will be scrutinised
–Total FDI in air transport sector from 2000-2012 at $434.75 million
FDI in broadcast
–Government decides to raise FDI cap to 74 percent
–FDI not hiked in TV news channels and FM radio
–Decision to benefit consumers with more choices and competitive pricing
–FDI also allowed in Mobile TV