India opens economy to foreigners

NEW DELHI, Jan. 25 (UPI) -- India will let foreign investors take majority control of companies selling a single-brand in a dramatic move toward free trade.

The Congress Party Cabinet decided Wednesday that foreign investors may hold as much as 51 percent of Indian companies that sell one brand, such as Nike, the Indian Express reported.

"This in any way does not cause any replacement or displacement as it is already happening through franchise," said Commerce Minister Kamal Nath. "Retailing of goods of multiple brands, even if such products are produced by the same manufacturer, would not be allowed."

New Delhi also removed multiple layers of approval while liberalizing existing sectors and opening new ones such as power trading, processing and warehousing of coffee and rubber to foreign investment.

"This is the first time in 15 years that the whole FDI policy has been reviewed in an integrated manner to remove anomalies and inconsistencies. This is not so much an exercise to revise caps, as to simplify and rationalize the procedures," said a government statement.