For international single-brand retailers, the government on Wednesday relaxed FDI law and also allowed foreign investment in contract manufacturing and coal mining. Briefing journalists on decisions made by the Union Cabinet headed by Prime Minister Narendra Modi, Minister of Commerce and Industry Piyush Goyal said 100% Foreign Direct Investment (FDI) has been approved under the automatic path of carbon mining and related facilities.To increase domestic production, under the automatic route, 100% FDI was permitted in contract manufacturing, he said, adding that 26% FDI was permitted in electronic media.

The Cabinet has expanded the definition of the compulsory 30 percent domestic sourcing standard on FDI in single-brand retailing. It also permitted single-brand retailers to begin online sales, waiving the previous condition of establishing a compulsory brick-and-mortar store, he said.