India moves forward for more FDI in specified sectors
24 July 2013
The policy of Foreign Direct Investment (FDI) in ten sectors, including telecom and defence has been further liberalized. As per reports, the decisions taken by the cabinet committee on 16-7-2013, indicate that the FDI limit in telecom sector will be 100% under approval route (FIPB) and 49% under automatic route.
Foreign investment in excess of 26% will be permitted in defence sector subject to case to case approval by Cabinet Committee on Security, if the same is likely to result in access to state-of-the-art technology. Besides these two sectors, there is considerable relaxation in sectors like finance (asset reconstruction companies), oil and gas and refining, stock exchanges, commodity exchanges, courier service and power exchanges.
As per news, upper limit in the insurance sector is also set to be increased to 49%, though this is likely to be subject to an amendment in the Act and hence parliamentary approval.