Union Cabinet Headed By PM Modi To Review FDI Policy Today

The Union Cabinet will review the foreign direct investment (FDI) policy in certain sectors on Wednesday. The meeting will focus on attracting more overseas funds, sources said.

The sectors, which could be considered for further relaxation of FDI, include construction and single brand retail.

According to sources, the foreign direct investment 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 a government nod is required beyond that limit.

Also Read | Congress questions PM Modi's assertion on FDI numbers

The relaxation of FDI policy is aimed at providing an investor friendly climate to foreign players and in turn attract more foreign direct investment to boost economic growth and create jobs. FDI during April-September this fiscal grew by 17 per cent to $25.35 billion.