The government on Tuesday hiked the cap on foreign direct investment or FDI in a number of sectors, including telecom and insurance.
Here are the top developments
FDI in telecom sector raised to 100 per cent from 74 per cent. Inter-ministerial body Telecom Commission had earlier approved hiking the FDI limit in the sector to 100 per cent
In the insurance sector 49 per cent FDI will be allowed under the automatic route to woo foreign companies who may be wary of bureaucratic hurdles
In the petroleum refining sector, the existing FDI cap of 49 per cent through Foreign Investment Promotion Board (FIPB) route has changed to the automatic route- which means no FIPB approval will be required henceforth; or fewer bureaucratic hurdles for foreign investors
In defence production 26 per cent foreign direct investment (FDI) cap to stay after Home and Defence ministries raised concerns
The government says it may allow higher FDI in defence for cases that will help India acquire "state-of-the-art technology."
The Cabinet Committee on Security (CCS) will have to approve such proposals with more than 26 per cent FDI in defence
49 per cent FDI in power exchanges will now be through thr automatic route instead of the FIPB route earlier
FDI cap hiked to 100 per cent from 74 per cent in asset reconstruction companies; of this up to 49 per cent will be under automatic route and above 49 per cent through FIPB
FDI cap in credit information companies raised to 74 per cent from 49 per cent
FDI up to 100 per cent through automatic route allowed in courier services
FDI in tea plantation up to 49 per cent through automatic route; 49-100 per cent through FIPB route
No decision taken on FDI cap in airports, media, brownfield projects, pharma and multi-brand retail
No change in 49 per cent FDI limit in civil aviation
The opposition Bharatiya Janata Party (BJP) slammed the government for its measures and called them "very unfortunate". The BJP said they were against FDI adding that the administration is "going towards ill governance"
