India opened its doors further to foreign direct investment (FDI), diluting the stringent condition of local sourcing for single-brand retail, in continuation of measures aimed at reviving growth. It also allowed 100% FDI in commercial coal mining and allowed as much in contract manufacturing through the automatic route, hoping to attract global vendors looking to diversify supply chains as the US and China battle it out in a trade war. Earlier, the government had issued a notification allowing 100% FDI in insurance intermediaries.
The Cabinet also approved a Rs 6,268-crore subsidy for sugar exports, besides 75 new medical colleges. “The changes in FDI policy will result in making India a more attractive FDI destination.These will help global companies looking for alternative manufacturing hubs and helps create large numbers of jobs''.