India overhauls foreign ownership rules

[nitpicker]

http://www.bbc.com/news/business-36575755

India overhauls foreign ownership rules

20 June 2016

From the section Business

India has announced a radical overhaul of its foreign ownership rules to attract more overseas investment. Airlines and some defence industries may now be 100% foreign owned - up from 49% and 74% respectively. And for overseas retailers there's respite from a rule that required 30% of what they sold to be Indian sourced.

The BBC's Simon Atkinson in Mumbai said it was the biggest signal yet that the country is serious about attracting more foreign investment. The move will be welcomed by brands like IKEA and Apple which see India as the next big market, he added. Investment rules in pharmaceuticals and food production have also been relaxed.

The new rules were introduced "with the objective of providing major impetus to employment and job creation in India," the government said in a statement. "With these changes, India is now the most open economy in the world for FDI [foreign direct investment]."
(snip)

A relaxation of arduous sourcing rules, which require foreign retailers to source 30% of what they sell from India, will appeal to companies like Apple. Its boss Tim Cook was here recently and he sees India as the next big market.

Notably there are no steps to let the likes of Walmart and Carrefour come and operate supermarkets here without a local partner. Those firms would love access to India's growing middle class. But the cries of protest from the millions running small stores would likely be too much for politicians to bear.
(snip)

[fasttense]

1. Funny how that works

India protects its small business owners while we ensure their extinction.