Inter-ministerial meet on FDI caps’ review on 1 July
27 Jun 2013 10:50 PM GMT
The DIPP has called an inter-ministerial meeting on 1 July to discuss the Finance Ministry’s proposal for raising FDI caps in several sectors including defence, telecom and multi-brand retail. The meeting will be headed by Secretary in the Department of Industrial Policy and Promotion (DIPP) Saurabh Chandra.
‘The Finance Ministry has suggested several changes in the FDI regime. Officials will discuss how to move forward on those proposals. The meeting will happen on 1 and 2 July,’ a senior official in the DIPP said.
The official-level meeting will be followed by a minister-level meeting. To promote India as an investment destination, Finance Ministry had favoured higher sectoral caps in almost all sectors, including defence, multi-brand retail and telecom.
Doing away with the 26 per cent ceiling, a committee headed by Economic Affairs Secretary Arvind Mayaram recommended that FDI limit be raised to 49 per cent in almost all sectors through automatic route. The panel suggested that FDI in defence be raised to 49 per cent under the government approval route and FDI cap in multi-brand retail to 74 per cent under the government approval route.
‘The Finance Ministry has suggested several changes in the FDI regime. Officials will discuss how to move forward on those proposals. The meeting will happen on 1 and 2 July,’ a senior official in the DIPP said.
The official-level meeting will be followed by a minister-level meeting. To promote India as an investment destination, Finance Ministry had favoured higher sectoral caps in almost all sectors, including defence, multi-brand retail and telecom.
Doing away with the 26 per cent ceiling, a committee headed by Economic Affairs Secretary Arvind Mayaram recommended that FDI limit be raised to 49 per cent in almost all sectors through automatic route. The panel suggested that FDI in defence be raised to 49 per cent under the government approval route and FDI cap in multi-brand retail to 74 per cent under the government approval route.
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