The Union Cabinet is likely to review foreign direct investment policy in certain sectors on Wednesday with a view to attracting more overseas funds, sources said. The sectors, which could be considered for further relaxation, include construction and single brand retail.
According to sources, FDI policy review in various sectors is expected to figure in today’s meeting of the Union Cabinet headed by Prime Minister Narendra Modi. Last year, there was a proposal to permit 100 per cent FDI through automatic route in single brand retail trading.
Currently FDI up to 49 per cent is permitted under the automatic route but beyond that limit government nod is required. The relaxation of policy is aimed at providing investor friendly climate to foreign players and in turn attract more FDI to boost economic growth and create jobs.
FDI during April-September this fiscal grew by 17 per cent to USD 25.35 billion.