A government panel on Tuesday proposed raising foreign investment limits in sectors like defence, multi-brand retail and telecommunications, to spur investment in India and tide over the Current Account Deficit woes.
The committee, which was set up by Finance Minister P Chidambaram to review the sectoral caps, has suggested that the Foreign Direct Investment (FDI) ceiling in the defence sector be raised to 49 percent under the government approval route from 26 percent at present.
In order to make multi-brand retail more attractive to foreign investors, the panel suggested that the FDI limit be raised to 74 percent under the Foreign Investment Promotion Board (FIPB) route from 51 percent.
(Source: Business Standard)