New Delhi: Seeking to streamline the foreign investment regime, the Union Cabinet is expected to take a decision Wednesday on introducing a composite cap which will include FDI, FII and other instruments in various sectors.
The Cabinet will discuss the "proposal for introduction of composite caps for simplification of FDI policy to attract foreign investments tomorrow," sources said.
The Commerce and Industry Ministry's proposal seeks to do away with the different kinds of overseas investment and bring about clarity in the norms.
The move would help in removing ambiguity on application of sectoral caps, conditions and approval requirements in different sectors and bring simplification in the foreign investment policy.
It would also provide Indian firms and investors an option of category of investments between FDI, FPI (FII, Qualified Foreign Investors), NRI and Foreign Venture Capital Investor.
It would help in improving ease of doing business in India, sources added.
The ministry has proposed a composite foreign investment cap (FDI + FPI (FII, QFI) + NRI + FVCI) in sectors including agriculture, tea, mining, broadcasting, media, airports, retail (single brand and multi-brand), e-commerce, asset reconstruction companies, banking, commodity exchanges and insurance.
In 2014-15, investment by foreign institutional investors (FII) grew by 717 percent to USD 40.92 billion. FDI grew by 27 percent to USD 30.93 billion in the previous fiscal.
