India News 2018, Congress leader Anand Sharma said the FDI (Foreign Direct Investment) amendments approved by the Narendra Modi Cabinet today were meant only to make a "big splash" before the prime minister goes to the Davos summit.
Sharma, a former Union Commerce and Industry minister, said the move was a "U-turn."
"The PM should now accept that they are following previous policies only," he said.
The Modi Cabinet today gave its nod to 100 per cent foreign direct investment (FDI) in single brand retail, through automatic route.
Essentially, this means that government approval is no longer required for FDI in single brand retail trading. Earlier, FDI through automatic route in single brand retail was capped at 49 per cent, and any foreign direct investment beyond this ceiling needed government approval.
Besides retail, the Modi Cabinet also allowed foreign airlines to invest up to 49 per cent under the government approval route in Air India. The FDI provision was earlier available for all Indian airlines except Air India.
"We had allowed 49% in private airlines...On our part it was a cautious decision to keep our national carrier Air India out...there are routes where only Air India goes and other properties...what happens to them? What happens to the assets worth crores of Air India?" Anand Sharma asked.
The former minister added that the matter would be "raised in Parliament," and called on the government to provide clarity on the Air India issue.
Indyapages view: the Retail industry and construction industry will welcome this move. The struggling jobs market may see a significant shift in sentiment as well
