The Union Cabinet has cleared the following proposals on 28-Aug-2019:

1. Coal Sector:

100% FDI through automatic route in coal mining, its sale and associated infrastructure, and contract manufacturing.

(This comes after February 2018 decision by Government which allowed auctioning of mines to private parties for commercial mining. Till now FDI was allowed in coal mines only for captive consumption.)

2. Online News Media:

26% FDI with Government permission in online news media. Currently, 26% FDI is allowed in print media and 49% FDI is allowed in broadcasting content services.

3. Contract Manufacturing:

100% FDI in Third Party manufactures in contract manufacturing. Currently, FDI is allowed in manufacture of own product through contract manufacturing.

4. Single Brand Retail Trading (SBRT):

• SBRT can start online store even before they set up Brick and Mortar stores (which currently was the norm). This will allow foreign retail entities to test their product in Indian market before making huge investments in setting up physical stores.
• Local sourcing norm has been eased. (1) Foreign Companies have to source at least 30% of products locally. Previous years’ purchases can also be taken into consideration to ascertain the 30% domestic requirements. (2) Sourcing from India will be considered as local sourcing even if the end products are exported. (3) Sourcing of Goods from India for global operations can be done through agreement with third party manufacturer. These relaxations might make India a hub of manufacturing for exports.