India liberalizes foreign direct investment to boost economy

NEW DELHI (AP) - India has decided to liberalize foreign direct investment in domestic manufacturing, coal mining and digital media and will also allow single-brand retailers to start online sales to infuse capital into the country and boost its economy.

Commerce and Industry Minister Piyush Goyal says the Cabinet on Wednesday approved 100% foreign direct investment in coal mining and associated infrastructure. He says it also approved 100% foreign direct investment in contract manufacturing and up to 26% investment in digital media.

The government made the decision as it grapples with a slowing of economic growth to a five-year low of 5.8% in the January-March quarter, with consumer spending and corporate investment faltering. Declining industrial output and automobile sales also raised fears of a deeper slowdown.