NEW DELHI: Ahead of the World Economic Forum later this month, the government on Wednesday has become strong-willed to allow 100 percent FDI from first to last the automatic route in single-brand retail.

It also permitted FIIs/FPIs to invest in power exchanges via the primary market and agreed foreign airlines investing up to 49 percent under the 'approval route' in national airlines carrier. These changes were declared after a Union Cabinet meeting under the leadership of Prime Minister Narendra Modi today.

So far FDI up to 49 percent was allowed under the automatic route but ahead of that limit, the government's bob was necessary. Also, until now, 49 per cent FDI was allowed under the automatic route in power exchanges have the registration under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010. Though, FII/FPI purchases were limited to secondary market merely.

The Modi-led government has clear views that real-estate broking services aren't measured real estate business and as a result, the sector is entitled to 100 per cent FDI under the automatic route.

The government noted that these changes would improve the ease of doing business and show the way to larger FDI inflows, which would throw growth in investment, income, and employment.

However, the alliance of All India Traders sturdily contrasted the move to allow 100% FDI in single brand retail through the automatic route. It said the move will smooth the progress of the easy entrance of multinationals in retail trade and will go against the BJP's poll pledges.

FDI for the duration of April-September, this fiscal obtained hike of 17 percent to $25.35 billion.