India simplifies FDI applications in rubber processing

New Delhi -- India's Commerce Ministry has liberalised ownership restrictions known as FDI (Foreign Direct Investment), speeding up the application procedure for foreign companies who wish to own up to 100 percent of their Indian operations in the rubber processing and storage sector.

In a statement, the Indian government said, "This is not so much an exercise to revise caps [Limits], as to simplify and rationalise the procedures.

The government now allows automatic applications for up to 100 percent foreign ownership in processing and warehousing in coffee and rubber industry. This move is designed to "further simplify the procedures for investing in India and to avoid multiple layers of approvals that were presently required in some activities" according to the government statement.

The changes to FDI rules also permit up to 51 percent foreign ownership of retail outlets for 'Single Brand' products. The statement continued, " This would imply that foreign companies would be allowed to sell goods sold internationally under a single brand, viz., Reebok, Nokia, Adidas. Retailing of goods of multiple brands, even if such products are produced by the same manufacturer, would not be allowed."

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Press release from Indian government

India to liberalize retail market BBC (UK)

Package cleared to make FDI in retail, other areas easier The Hindu (India)