The level of Foreign Direct Investment (FDI) in the multi-brand retail market in India that was proposed by PM Manmohan Singh’s Cabinet on September 14th, based on recommendations by the Indian Department of Industrial Policy & Promotion. This would open the door for large multi-brand retailers such as Wal Mart to enter the Indian market, though individual states would still retain the ability to allow or deny FDI.
The new maximum level of FDI by foreign carriers, including Foreign Institutional Investment, proposed for India’s civilian aviation sector. This is expected to attract greater investment in the civilian aviation sector, improve service standards, and lead to more technological advancements in air transport. The proposal stipulates that at least 50% of FDI in civilian aviation must be invested in back-end infrastructure within three years of initial FDI.
The new cap in FDI for the Indian broadcast sector proposed by PM Singh’s Cabinet. This includes direct-to-home, Cable Networks, and Mobile TV services, while TV News channels and FM radio are still capped at 26%. The recent proposed changes to FDI regulations in these three sectors are key elements of the “big bang” economic reforms being pushed by Singh’s UPA government in response to a slowing Indian economy.