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Prime Minister Manmohan Singh is meeting his senior cabinet colleagues this evening to discuss a proposal to increase foreign direct investment (FDI) cap in sectors like telecom, retail and defence.
The PM is expected to give a broad policy directive on the proposed reforms in FDI. Concerned ministries including Defence, Finance, Commerce & Industry, Aviation, Power, Petroleum & Natural Gas are expected to be present for the meeting at Dr Singh's residence.
The Defence Ministry as well as the Home Ministry have raised concerns on raising the FDI cap in defence to 49 per cent from the existing 26 per cent.
The meeting comes days after Commerce and Industry Minister Anand Sharma and Finance Minister P Chidambaram's visit to the United States to woo foreign investments.
The FDI inflows in 2012-13 aggregated $22.42 billion, a decline from $36.50 billion a year before.
Seeking to promote India as an investment destination, the Finance Ministry last month proposed sweeping changes in the FDI regime, favouring higher sectoral caps in almost all sectors including defence, multi-brand retail and telecom.
Virtually doing away with the 26 per cent ceiling, a committee headed by Economic Affairs Secretary Arvind Mayaram has recommended that FDI limit be raised to 49 per cent in almost all sectors through the automatic route.
The PM is expected to give a go-ahead for the automatic route for FDI instead of the conventional Foreign Investment Promotion Board (FIPB) route in sectors where it is already permissible.
A committee headed by Economic Affairs Secretary Arvind Mayaram has also proposed raising the cap to 49 per cent under automatic route in sectors like single-brand retail, existing pharma companies, power and commodity exchanges, PSU banks, tea plantation, print media, PSU petroleum refinery, asset reconstruction companies, stock exchanges, insurance, depositories and clearing corporations and satellite services.
The government is keen on increasing FDI ceilings to attract more overseas investments and bridge the widening current account deficit. The deficit has been estimated at five per cent of the gross domestic product (GDP) in 2012-13 as against the Reserve bank of India's (RBI) comfort level of 2.5 per cent
Prime Minister chairs meet for raising FDI cap - NDTVProfit.com
The PM is expected to give a broad policy directive on the proposed reforms in FDI. Concerned ministries including Defence, Finance, Commerce & Industry, Aviation, Power, Petroleum & Natural Gas are expected to be present for the meeting at Dr Singh's residence.
The Defence Ministry as well as the Home Ministry have raised concerns on raising the FDI cap in defence to 49 per cent from the existing 26 per cent.
The meeting comes days after Commerce and Industry Minister Anand Sharma and Finance Minister P Chidambaram's visit to the United States to woo foreign investments.
The FDI inflows in 2012-13 aggregated $22.42 billion, a decline from $36.50 billion a year before.
Seeking to promote India as an investment destination, the Finance Ministry last month proposed sweeping changes in the FDI regime, favouring higher sectoral caps in almost all sectors including defence, multi-brand retail and telecom.
Virtually doing away with the 26 per cent ceiling, a committee headed by Economic Affairs Secretary Arvind Mayaram has recommended that FDI limit be raised to 49 per cent in almost all sectors through the automatic route.
The PM is expected to give a go-ahead for the automatic route for FDI instead of the conventional Foreign Investment Promotion Board (FIPB) route in sectors where it is already permissible.
A committee headed by Economic Affairs Secretary Arvind Mayaram has also proposed raising the cap to 49 per cent under automatic route in sectors like single-brand retail, existing pharma companies, power and commodity exchanges, PSU banks, tea plantation, print media, PSU petroleum refinery, asset reconstruction companies, stock exchanges, insurance, depositories and clearing corporations and satellite services.
The government is keen on increasing FDI ceilings to attract more overseas investments and bridge the widening current account deficit. The deficit has been estimated at five per cent of the gross domestic product (GDP) in 2012-13 as against the Reserve bank of India's (RBI) comfort level of 2.5 per cent
Prime Minister chairs meet for raising FDI cap - NDTVProfit.com
