"Foreign investment (s) in Air India including that of foreign airline (s) shall not exceed 49 per cent either directly or indirectly substantial ownership and effective control of Air India shall continue to be vested in Indian National", the statement said.
WB projects 7.3% growth India's growth rate in 2018 is projected to hit 7.3 per cent and 7.5 per cent in the next two years, according to the World Bank, which said the country has "enormous growth potential" compared to other emerging economies with the implementation of comprehensive reforms. Foreign single-brand retail companies can set up operations without any time lag, thanks to the nod for 100% FDI under the automatic route.
"It has been chose to clarify that real-estate broking service does not amount to real estate business and is therefore, eligible for 100% FDI under automatic route", the statement said.
In the case of medical devices, the government has permitted a wide range of items that can attract up to 100 per cent FDI via the automatic route.
"This will lead to larger FDI inflows, contributing to growth of investment, income and employment", the government said in a statement.
Among the "disastrous decisions", Sen listed the "hasty merger" of Indian Airlines and Air India and "forcible procurement" of a huge fleet of aircraft from foreign companies through direct purchase at an inopportune time thereby imposing on the company an "unbearable burden of indebtedness leading to loss". The Cabinet has allowed 100% FDI via automatic route in single brand retail trading and construction, while it has raised the existing limit in power exchanges and aviation sectors.
"Allowing 100 per cent FDI in single-brand retail trade will further increase the hardship of traditional retail trade sector which is the second biggest livelihood giver after agriculture and expedite the ruin of the traditional retail trade sector", Sen said.
This is unedited, unformatted feed from the Press Trust of India wire.