India liberalizes foreign direct investment to boost economy
NEW DELHI — India decided Wednesday to liberalize foreign direct investment in domestic manufacturing, coal mining and digital media, and also allow single-brand retailers to start online sales to infuse capital into the country and boost its economy.
Commerce and Industry Minister Piyush Goyal said the Cabinet approved 100% foreign direct investment in coal mining and associated infrastructure. He said it also approved 100% foreign investment in contract manufacturing and up to 26% investment in digital media.
The government made the decision as it grappled with a slowing of economic growth to a five-year low of 5.8% in the January-March quarter, with consumer spending and corporate investment faltering. Declining industrial output and automobile sales also raised fears of a deeper slowdown.