India’s Growth Trajectory: Cabinet approves 100% FDI in single brand retail and more through automatic route


The Indian government is making all efforts to usher in globalization, liberalization across the Indian markets. After making 100% FDI approval in the defence sector, it is time for the foreign airlines.


Modi led Indian government has allowed a 100 percent FDI (foreign direct investment) in single-brand retail trading and construction development without any government approval. This decision is a boon for all the overseas investors interested in investing in the Indian economy.

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Not only this, the government has given its nod to foreign airlines to own 49 percent in Air India under the approval route. For this purpose, the government has laid out two conditions, as per a statement:

  • Foreign investment, including that of foreign Airline (s), shall not exceed 49 percent either directly or indirectly, and
  • Substantial ownership and effective control of Air India shall continue to be vested in Indian National

The decision was taken and announced at a Cabinet meeting. The meeting was chaired by Prime Minister Narendra Modi in New Delhi. Needless to state, PM Modi has made unprecedented changes in the Indian economy to make it more robust, financially sound and competitively efficient.

There is a slew of benefits of this decision of approving 100% FDI (foreign direct investment) in single-brand retail trading and construction development. The benefits of this decision are likely to be greater ease of doing business, the larger growth of the economy, higher GDP, attractive FDI inflows among various other benefits.

As far as the service of Real estate broking is concerned, it is not encapsulated in the real estate business. Hence, it is eligible to be included in the 100% FDI list under the automatic route.

The inclusion of 100% FDI in India’s economic structure has given a matchless fillip to the Indian economy. Although the Forex is still low, it is still better than what it was almost 4 years ago.


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