Crucial week for FDI decisions: Sources

This  week could be crucial as far as announcements regarding FDI is concerned. Sources exclusively told CNBC-TV18 that the government may announce some key FDI decisions during this week. A final call on FDI decisions will be taken after commerce minister Anand  Sharma returns on September 12. However, there has been no decision yet on modifying the FDI cap on multi-brand retail.

Sources add that a clarification on single-brand retail norms was likely this week. The government had earlier proposed a 51% FDI cap in multi-brand retail whereas the PMEAC suggested a 49% cap. In what could be a big relief, the government is not expecting any opposition from the TMC regarding FDI in aviation. A Cabinet note allowing 49% stake to foreign carriers has already been moved.

Sources indicate that the window for FDI-related reforms is very narrow and the government will find it tough to make FDI announcements ahead of the state elections. Aviation minister Ajit Singh told CNBC-TV18 that the government was keen on FDI in aviation and expects the Cabinet to take up the matter very soon.