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Cabinet Decision to attract FDI

Published on August 29, 2019
Current context: The Union Cabinet took major decisions in its meeting on 28th August 2019 to attract foreign direct investment (FDI) into the country.
Cabinet Decision to attract FDI  
  • The current policy for a single-brand retail company says that if it has more than 51% FDI needs, it has to source 30% of its goods from within India.
  • The cabinet has relaxed the requirement of 30% by allowing it to be calculated over the first five years of operation.
  • It has been decided that all procurements made from India by the SBRT (single-brand retail trade) entities, irrespective of whether the goods procured are sold in India or exported, that single brand shall be counted towards local sourcing.
  • The cabinet has decided to allow 100% FDI under the automatic route in contract manufacturing in India which was only for the manufacturing sector earlier.
  • Earlier, the SBRT had to set up a brick and mortar store before selling online but now the Cabinet has approved them start selling online, before setting up a brick and mortar store as long as they set one up within two years of starting online sales.
  • For print media, the cabinet has permitted 26% FDI for uploading and streaming news and current affairs using digital media.
  • For coal mining, 100% FDI is permitted under automatic route for sale of coal, for coal mining activities.


Q.1 _____% of FDI is permitted for uploading and streaming news and current affairs using digital media, on the lines of print media?
a. 20%
b. 30%
c. 26%
d. 22%

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