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Govt may permit 100 percent FDI in contract manufacturing

Monday, 12 Aug 2019
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The government is working on a proposal to allow 100 percent foreign direct investment (FDI) in contract manufacturing to attract overseas investments.

As per the existing foreign investment policy, 100 percent FDI is allowed in the manufacturing sector under the automatic route.

A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without government’s approval.

The Commerce and Industry Ministry is working on a proposal which is expected to be finalised soon and sent for Union Cabinet’s approval.

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