The Union Cabinet has given its ex-post-facto approval for the FDI policy amendments announced by the Government on 20th June, 2016. <br/><br/>The FDI policy amendments are meant to liberalise and simplify it to provide ease of doing business leading to larger FDI inflows contributing to growth of investment, incomes and employment.<br/><br/>As per the liberalised norms, foreign investment in defence sector is now permitted up to 100 per cent. Earlier policy permitted 49 per cent FDI participation in the equity of a company under automatic route. With a view to aid in modernisation of the existing airports to establish a high standard and help ease pressure on the existing airports, 100 per cent FDI under automatic route has been allowed in brownfield airport projects. <br/><br/>In case of single brand retail trading, the government has relaxed local sourcing norms for up to three years, with prior government approval, for entities undertaking trading of<br/>products having state 'of' art and cutting edge technology.For private security agencies, FDI up to 49 per cent is now permitted under automatic route and beyond that and up to 74 per cent, government approval is required. <br/><br/>Norms for foreign invesment in pharmaceutical sector too have been liberalised. FDI ceiling in sectors like teleports, Direct to Home (DTH), Cable Networks, mobile TV and Headend-in-the Sky Broadcasting Service has been increased to 100 per cent.Besides, 100 per cent FDI under automatic route for trading, including through e-commerce has been permitted in respect of food products manufactured in India.