UPA forces reforms, allows 100% FDI in telecom sector

New Delhi, July 16: The UPA government on Tuesday raised foreign direct investment (FDI) caps in a number of sectors like telecom, insurance, defence, credit information services and asset reconstruction companies. The move is expected to lead major investments flowing in.

The decision on the FDI policy, which is largely based on recommendations of a committee headed by economic affairs secretary Arvind Mayaram, was taken in a meeting chaired by Prime Minister Manmohan Singh on Tuesday. His senior Cabinet colleagues were present at the meeting.

The FDI cap in the telecom sector has been raised to 100 per cent from the existing 74 per cent. The FDI cap in the insurance sector was raised to 49 per cent, subject to legislative amendments. On defence production, the Cabinet Committee on Security will approve porposals gradually beyond the existing 26 per cent, which will result in access to state-of-the-art technology in the country.

OneIndia News