New FDI norms
Q. Which of the following are true regarding new FDI norms?
1) 74% FDI under automatic route in brownfield pharmaceuticals is permitted.
2) 100% FDI under automatic route in Brownfield Airport projects.
3) Local sourcing norms up to three years have been relaxed for Single Brand Retail having state-of-art technology.- Published on 21 Jun 16a. 2, 3
b. 1, 3
c. 1, 2
d. All of the above
ANSWER: All of the above
- The extant FDI policy on pharmaceutical sector provides for 100% FDI under automatic route in greenfield pharma and FDI up to 100% under government approval in brownfield pharma. With the objective of promoting the development of this sector, it has been decided to permit up to 74% FDI under automatic route in brownfield pharmaceuticals and government approval route beyond 74% will continue.
- The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects and 74% FDI in Brownfield Projects under automatic route. FDI beyond 74% for Brownfield Projects is under government route. With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100% FDI under automatic route in Brownfield Airport projects.
- It has now been decided to relax local sourcing norms up to three years and a relaxed sourcing regime for another five years for entities undertaking Single Brand Retail Trading of products having ‘state-of-art’ and ‘cutting edge’ technology.
