FinMin for hiking FDI limits

Seeking to promote India as an investment destination, the Finance Ministry on Tuesday proposed sweeping changes in the FDI regime, favouring higher sectoral caps in almost all sectors including defence, multi-brand retail and telecom.

A committee headed by Economic Affairs Secretary Arvind Mayaram recommended that Foreign Direct Investment limit be raised to 49 per cent in almost all sectors through automatic route. The Committee suggested that FDI in defence be raised to 49 per cent under the government approval route, from 26 per cent.

Besides, it has proposed to increase FDI cap to 74 per cent in the multi-brand retail trading under the government approval route.