DIPP discusses raising FDI limit in key sectors with ministries

Recently, the the Department of Industrial Policy & Promotion (DIPP) held meeting with around 15 ministries to understand their views on raising foreign direct investment (FDI) limit on some key sectors. These sectors include civil aviation, defence, telecom and multi-brand retail. Ministries of defence, I&B, civil aviation and petroleum & natural gas have reportedly attended the meeting. Based on the outcome of the meeting, the department would prepare a cabinet note for raising limit on FDI in these sectors. It may be recalled that the union finance ministry suggested raising the the FDI threshold in almost all sectors to boost foreign investment. The ministry's suggestion is based on a report by the committee headed by Economic Affairs Secretary Arvind Mayaram on FDI in India. The report recommended FDI limit be raised to 49 per cent in almost all sectors through the automatic route. Before raising FDI caps in telecom, defence, civil aviation and space, some of the key concerns of the home ministry must be addressed. In defence and petroleum, the ministers concerned have said they will give their opinion on the issue through an official communication directly to Commerce Minister Anand Sharma. Similarly, the civil aviation ministry, too, will send in its final comments after discussing the matter internally.