In an effort to get economic growth back on track, new decisions were taken by the Union Cabinet in its meeting, including further liberalizing of foreign direct investment (FDI) rules in four sectors.
There is a little slowing down of FDI worldwide so some significant decisions were necessary to boost growth. The new measures will try to address slowing of economy and take steps to revive growth.
The government approved foreign investment in digital media up to stakes of 26%, allowed 100% foreign investment for coal mining and contract manufacturing, and eased sourcing norms for single-brand retailers.
On FDI in single brand retailing, the Cabinet has expanded the definition of mandatory 30% domestic sourcing norm. It also allowed single brand retailers to start online sales. The previous rule of having compulsory brick and mortar store has been removed.
The Cabinet has also approved 75 new medical colleges, to be established by 2021-22, with ?24,375-crore investment. This is a move to add 15,700 MBBS seats in the country.
Government will provide ?6,268-crore subsidy towards exporting of 60 lakh metric tonnes of sugar. Subsidy will be directly transferred to farmer's account.
The Cabinet has also approved establishment of an International Coalition for Disaster Resilient Infrastructure (CDRI) .