labels: industry - general, economy - general
Government weighs sector-wise cap for FDI news
17 March 2007

Mumbai: The government is looking at a uniform ceiling on foreign direct investment (FDI) in different business segments within a sector as part of the review to streamline foreign investment regulations.

A uniform FDI limit for different segments within a sector would reduce the complexity of the caps going up in different business area, said commerce and industry minister Kamal Nath.

The government is working towards a single FDI cap for an entire sector, the minister said, adding that the status review of the FDI policy and regulations was in progress to see how they can be streamlined.

The government is also looking at liberalising FDI in sectors that could become big employment generators with foreign capital, he said.

"Based on our experience (so far) we will be seeing how it (the more liberal FDI policy) can generate employment," he added.

Sources, meanwhile, said the government is likely to allow foreign investors to pick stake in commodity exchanges and change norms and caps for aviation, petroleum and retail.

The review, which was last done in March 2006, has been postponed by a month due to the budget session. The review will come up when Parliament is in recess, official sources said. Parliament goes into recess from March 21 and will meet again on 18 April.

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Government weighs sector-wise cap for FDI