The government on Wednesday allowed greater Foreign Direct Investment in areas such as civil aviation, petroleum and natural gas and commodity exchanges. Norms have also been relaxed for sectors like mining, and credit information companies.
Announcing the decision of the Union Cabinet, Information and Broadcasting Minister P R Dasmunsi said that in general terms, there is a 49 per cent cap on foreign investment, including 23 per cent FII component, in all these sectors.
"FDI percentage will be 26 per cent and the investment component of FIIs at 23 per cent," he told reporters.
The FDI review, aimed at streamlining the process and opening up labour-intensive sectors, has been due for long. However, FDI norms for retail have not been changed. Under the present dispensation, 51 per cent FDI is allowed in single brand retail, while none is allowed in multi-brand.